Afd - Green Climate Fund

FP119: Water Banking and Adaptation of Agriculture to Climate
Change in Northern Gaza
Palestine | Agence Française de Developpement(AFD) | Decision B.24/09
4 December 2019
Water Banking and Adaptation of Agriculture to Climate
Project/Programme Title:
Country/Region: PALESTINE
Accredited Entity: Agence Française de Développement (AFD)
Date of Submission: 25 June 2018

Contents
Section A PROJECT / PROGRAMME SUMMARY
Section B FINANCING / COST INFORMATION
Section C DETAILED PROJECT / PROGRAMME DESCRIPTION
Section D RATIONALE FOR GCF INVOLVEMENT
Section E EXPECTED PERFORMANCE AGAINST INVESTMENT CRITERIA
Section F APPRAISAL SUMMARY
Section G RISK ASSESSMENT AND MANAGEMENT
Section H RESULTS MONITORING AND REPORTING
Section I ANNEXES
Note to accredited entities on the use of the funding proposal template

• Sections A, B, D, E and H of the funding proposal require detailed inputs from the accredited entity. For all
other sections, including the Appraisal Summary in section F, accredited entities have discretion in how they
wish to present the information. Accredited entities can either directly incorporate information into this
proposal, or provide summary information in the proposal with cross-reference to other project documents
such as project appraisal document.
• The total number of pages for the funding proposal (excluding annexes) is expected not to exceed 50.
Please submit the completed form to:

fundingproposal@gcfund.org
Please use the following name convention for the file name:
“[FP]-[Agency Short Name]-[Date]-[Serial Number]”
LIST OF KEY ABBREVIATIONS
AFD Agence Française de Développement

EQA Environment Quality Authority
FAO Food and Agriculture Organization of the United Nations
INCR Initial national communication
IPCC Intergovernmental Panel on Climate Change
IRR Internal Rate of Return
GEDCO Gaza Electricity Distribution Company
MAR Managed Aquifer Recharge
MoA Ministry of Agriculture
MoFP Ministry of Finance and Planning
NAP National Adaptation Plan
NGEST North Gaza Emergency Sewage Treatment
NWC National Water Company
NDC Nationally Determined Contribution
PENRA Palestinian Energy and Natural Resources Authority
PNA Palestine
PRECIS Providing Regional Climates for Impact Studies
PMU Project Management Unit
PWA Palestinian Water Authority
TWW Treated Wastewater
RS Recovery Scheme
UNDP United Nations Development Programme
UNFCCC United Nations Framework Convention on Climate Change
WB World Bank
WHO World Health Organization
WSRC Water Sector Regulatory Council
WUA Water Users Association
WWTP waste water treatment plants
PROJECT / PROGRAMME SUMMARY
GREEN CLIMATE FUND FUNDING PROPOSAL | PAGE 1 OF 80 A
A.1. Brief Project/Programme Information
Water Banking and Adaptation of Agriculture to Climate
A.1.1. Project / programme title
A.1.2. Project or programme Project
A.1.3. Country (ies) / region Palestine
A.1.4. National designated authority (ies) Environment Quality Authority
A.1.5. Accredited entity Agence Française de Développement
A.1.5.a.Access modality ☐ Direct ☒ International

Executing Entity: Palestinian Water Authority; Ministry of
A.1.6. Executing entity / beneficiary Agriculture – Food and Agriculture Organization
Beneficiary: Palestinian Authority
A.1.7. Project size category (Total investment, million ☐ Micro (≤10) ☒ Small (10<x≤50)
USD) ☐ Medium (50<x≤250) ☐ Large (>250)
A.1.8. Mitigation / adaptation focus ☐ Mitigation ☐ Adaptation ☒ Cross-cutting
A.1.9. Date of submission 25 June 2018, V2 28 May 2019

MECHALI Zacharie – Task Team Leader (TTL)
BALLIN Quentin – co-TTL
Contact person, position
OURBAK Timothée – Climate Change Specialist, GCF focal
point
A.1.10. Organization Agence Française de Développement - AFD
Project
mechaliz@afd.fr ; ballinq@afd.fr
contact Email address
ourbakt@afd.fr
details
Telephone number +33 1 53 44 31 31
5, rue Roland Barthes
Mailing address 75598 Paris cedex 12
France
A.1.11. Results areas(mark all that apply)
Reduced emissions from:

☒ Energy access and power generation
(E.g. on-grid, micro-grid or off-grid solar, wind, geothermal, etc.)
☐ Low emission transport

(E.g. high-speed rail, rapid bus system, etc.)
☐ Buildings, cities and industries and appliances

(E.g. new and retrofitted energy-efficient buildings, energy-efficient equipment for companies and supply chain management, etc.)
☐ Forestry and land use

(E.g. forest conservation and management, agroforestry, agricultural irrigation, water treatment and management, etc.)
Increased resilience of:

Most vulnerable people and communities
☒ (E.g. mitigation of operational risk associated with climate change – diversification of supply sources and supply chain management,
relocation of manufacturing facilities and warehouses, etc.)
☒ Health and well-being, and food and water security
(E.g. climate-resilient crops, efficient irrigation systems, etc.)
☐ Infrastructure and built environment
(E.g. sea walls, resilient road networks, etc.)
☒ Ecosystem and ecosystem services
(E.g. ecosystem conservation and management, ecotourism, etc.)
PROJECT / PROGRAMME SUMMARY
GREEN CLIMATE FUND FUNDING PROPOSAL | PAGE 2 OF 80 A
A.2. Project / Programme Executive Summary (max 300 words)
The Palestinian National Adaptation Plan (NAP) and the initial national communication (INCR) to the United
Nations Framework Convention on Climate Change (UNFCCC) in addition to the Palestinian Nationally Determined
Contribution (NDC) have identified water and food security as the most vulnerable issues in Palestine, with knock-
on implications for all sectors. In Gaza, the population has one of the lowest per capita water availability in the
world, with quality far below World Health Organization (WHO) standards.
Food and water insecurity will increase in the baseline scenario with a “climate contribution” to this trend, in
terms of acceleration of existing anthropic factors, estimated at 30% (as will be explained further down). The
project intends to counterbalance the negative compounding effect of climate change on already degraded
resources by delivering infrastructure and innovative hydraulic technology -Managed Aquifer Recharge (MAR)-
to create a new non-conventional water resource to be injected in the aquifer and to be reused for agricultural
purposes.
The project will increase the resilience of 4 200 people involved in agriculture, and enhance the livelihood of
23 553 people, including 11 776 women; MAR will alleviate the pressure on the aquifer, thereby improving access
to domestic water of 200 000 additional people.
It will also increase the production of Palestinian renewable energy, through the installation of 8,5 ha of PV
scheme.
This is a huge paradigm shift for Palestine, where the MAR technology is implemented for the first time and will
allow engaging directly with the neuralgic issue of adaptation to climate change in the area, which is the Nexus
Food – Water – Energy. A map of the project area and key infrastructure is provided in Annex 2.
A.3. Project/Programme Milestone

Expected approval from accredited entity’s
14/11/2019
Board (if applicable)
Expected financial close 31/12/2026
Start: 01/07/2019
Estimated implementation start and end date
End: 01/07/2024
Project/programme lifespan 5 years

FINANCING / COST INFORMATION
GREEN CLIMATE FUND FUNDING PROPOSAL | PAGE 3 OF 80 B
B.1. Description of Financial Elements of the Project / Programme
Budget
Amount Amount Amount Amount
Financing Account Amount
Output Activity Input Year 1 Year 3 Year 4 Year 5 Total (EUR)
Source Descripti Year 2 (EUR)
(EUR) (EUR) (EUR) (EUR)
on
Input 1.1.1
Rehabilitation
Activity 1.1 An of 7
Constucti
additional infiltration AFD 217 965 217 965 0 0 0 435 929
on cost
water resource basins for
is created by recharge of
Managed the aquifer
Output 1 :
Aquifer Input 1.1.2 Equipme
Production of 1 000 000 0 0 0 0 1 000 000
Recharge Delivery of nt
additional GCF
the recovery Constucti
quantities of 1 204 083 2 000 000 2 214 000 0 0 5 418 083
scheme on cost
water for
Activity 1.2
agricultural use Input 1.2.1
Water – Energy
Delivery of 2
Nexus,
PV schemes
development Equipme
to sustain the IrishAid 3 642 857 3 642 857 0 0 0 7 285 714
of renewable nt
overall needs
low-emission
of the NGEST
energy
scheme
solutions
Total
6 064 905 5 860 822 2 214 000 0 0 14 139 726
Component 1
Output 2 : Activity 2.1 An Input 2.1.1
Constucti
Development of improved Delivery of an GCF 0 2 165 179 2 165 179 2 165 179 2 165 179 8 660 714
on cost
irrigation, water water service irrigation
efficiency and for irrigation is scheme,
climate resilient brought to 4 1 500 ha
agriculture 200 Constucti
AFD 2 467 857 2 467 857 2 467 857 2 467 857 0 9 871 429
beneficiaries on cost
serving 1 500
ha
Local
Input 2.2.1
consultan 148 200 148 200 148 200 148 200 148 200 741 000
Extension
GCF ts
services to
Equipme
farmers 194 000 194 000
nt
Input 2.2.2
Activity 2.2 Subsidy of
Equipme
Increased on-farm GCF 0 0 1 480 349 1 480 349 1 480 349 4 441 046
nt
climate water saving
resilience of equipment
agriculture, Input 2.2.3 Equipme
0 25 000 25 000 25 000 25 000 100 000
adaptation of Gender, land nt
cropping tenure and
systems to irrigation – a
climate change Gender-
responsive GCF Local
approach to consultan 21 750 21 750 21 750 21 750 0 87 000
agricultural ts
resilience to
climate
change
Total
2 637 807 4 827 986 6 502 334 6 308 334 3 818 727 24 095 189
Component 2
Output 3 : Activity 3.1 Input 3.1.1 Local
Management of Strenghtening Technical AFD consultan 0 100 000 100 000 100 000 100 000 400 000
the water cycle of PWA assistance ts
and capacity capacities in its Internatio
building of role of nal
0 100 000 100 000 100 000 100 000 400 000
stakeholders coordination consultan
and quality t
control of the Input 3.1.2
process of Setting-up of
reuse of a water
Equipme
treated waste quality GCF 0 0 150 784 0 0 150 784
nt
water monitoring
and control
system
Input 3.2.1
Identification
and
establishmen
t of the co- Local
management AFD consultan 93 500 93 500 93 500 93 500 0 374 000
Activity 3.2 Exit scheme – ts
Strategy and Structuring
Transfer of and capacity
O&M to Water building of a
Users WUA
Input 3.2.2
Integration of
Local
women in the
GCF consultan 0 47 000 47 000 0 0 94 000
governance
ts
bodies of the
WUA
Input 3.3.1
Diagnostic
and analysis
of the Local
conditions of AFD consultan 0 0 208 000 0 0 208 000
Activity 3.3
restoration of ts
Communities
unused land
are
within the
empowered
irrigable area
and supported,
Input 3.3.2
in the context
Psychosocial
of the conflict
support and
in Gaza Local
strengthening
GCF consultan 0 62 333 62 333 62 333 0 187 000
of community
ts
and
household
bounds
Activity 3.4 Local
Capitalization consultan 0 0 50 000 50 000 50 000 150 000
of the Input 3.4.1 ts
outputs/outco Intellectual
GCF Internatio
mes for services for
nal
replication and capitalization 0 0 50 000 50 000 50 000 150 000
consultan
upscaling in
t
Palestine
Total
93 500 402 833 861 617 455 833 300 000 2 113 784
Component 3
Operation costs AFD 112 500 108 738 68 000 42 596 37 400 369 234
Project of the PMU at GCF 181 250 171 250 92 000 53 251 56 100 553 851
PWA Irish Aid 56 250 41 355 30 000 18 792 16 500 162 897
Management
Component Operation costs AFD 11 950 11 950 11 950 11 950 11 950 59 749
of the FAO (7%
of inputs GCF 16 674 16 674 16 674 16 674 16 674 83 370
2.2.1,2.2.3, Act.
Irish Aid 0 0 0 0 0 0
3.2 and 3.3)
Total PM
378 624 349 967 218 624 143 263 138 624 1 229 101
Component
Project cost 9 174 835 11 441 607 9 796 575 6 907 430 4 257 351 41 577 799
AFD 2 903 771 3 100 009 3 049 307 2 815 903 249 350 12 118 340
GCF 2 571 957 4 657 386 6 523 268 4 072 735 3 991 501 21 816 848
Irish Aid 3 699 107 3 684 212 30 000 18 792 16 500 7 448 611
Contingency
8%
rate
AFD 175 939 175 939 175 939 175 939 175 939 879 693
29%
GCF 53% 339 787 339 787 339 787 339 787 339 787 1 698 935
Contingencies
Irish Aid 18% 110 278 110 278 110 278 110 278 110 278 551 388
Total
626 003 626 003 626 003 626 003 626 003 3 130 016
Contingencies
Total Amount 9 800 839 12 067 610 10 422 579 7 533 434 4 883 354 44 709 782
Total Amount
2 911 744 4 997 172 6 863 055 4 412 522 4 331 288 23 709 783
GCF
Total Amount
3 809 385 3 794 490 140 278 129 070 126 778 8 000 000
Irish Aid
Total Amount
3 079 710 3 275 948 3 225 245 2 991 841 425 288 13 000 000
AE
As presented in the table above, only few activities / inputs won’t be financed by GCF Proceeds: 1.1.1, 1.2.1, 3.1.1, 3.2.1 and 3.3.1. Since the GCF requirements
apply to the entire funded activity, including parts which the GCF does not finance, AFD will pass down the GCF requirements to the parts of the funded activity
that is not being financed by GCF.
B.2. Project Financing Information
Financial Instrument Amount Currency Tenor Pricing
(a) Total 44.709782

million euro
project (a) = (b) + (c)
(€)
financing
…………………
(i) Senior Loans Options
………………… ( ) years ( )%
(ii) Subordinated Loans Options
………………… ( ) years ( )%
(b) GCF (iii) Equity Options
………………… ( ) % IRR
financing to (iv) Guarantees Options
recipient …………………
(v) Reimbursable Options
grants *
23.709782 million euro
(vi) Grants * (€)
* Please provide economic and financial justification in section F.1 for the concessionality that GCF is expected to
provide, particularly in the case of grants. Please specify difference in tenor and price between GCF financing and
that of accredited entities. Please note that the level of concessionality should correspond to the level of the
project/programme’s expected performance against the investment criteria indicated in section E.
Total requested million euro

23.882617
(i+ii+iii+iv+v+vi) (€)
Financial Name of
Amount Currency Tenor Pricing Seniority
Instrument Institution
million euro
Grant 13 (€) AFD ( )% Options
(c) Co- ( ) years
financing to Grant 8 million euro Irish Aid ( )% Options
(€) ( ) years
recipient Options …………… ……………… ( ) % IRR Options
Options
Options …………… ……………… Options
Options
Lead financing institution: AFD

* Please provide a confirmation letter or a letter of commitment in section I issued by the co-financing institution.
In cases where the accredited entity (AE) deploys the GCF financing directly to the recipient, (i.e. the GCF financing
passes directly from the GCF to the recipient through the AE)or if the AE is the recipient itself, in the proposed
financial instrument and terms as described in part (b), this subsection can be skipped.
If there is a financial arrangement between the GCF and the AE,which entails a financial instrument and/or financial
terms separate from the ones described in part (b), please fill out the table below to specify the proposed instrument
(d) Financial and terms between the GCF and the AE.
terms
between Financial
Amount Currency Tenor Pricing
GCF and AE instrument
(if applicable) Choose an item. …………………. Options ( ) years ( )%
Please provide a justification for the difference in the financial instrument and/or terms between what is provided by
the AE to the recipient and what is requested from the GCF to the AE.
B.3. Financial Markets Overview (not applicable)

How market price or expected commercial rate return was (non-concessional) determined?
Please provide an overview of the size of total banking assets, debt capital markets and equity capital markets which
could be tapped to finance the proposed project/programme.
Please provide an overview of market rates (i.e. 1-year T-Bill, 5-year government bond, 5-year corporate bond (specify
credit rating) and 5-year syndicate loan.
Provide examples or information on comparable transactions.
DETAILED PROJECT / PROGRAMME DESCRIPTION
GREEN CLIMATE FUND FUNDING PROPOSAL | PAGE 10 OF 80 C
Please fill out applicable sub-sections and provide additional information if necessary, as these requirements may vary
depending on the nature of the project / programme.
C.1. Strategic Context

Acute water scarcity in Palestine is a strong determinant of the climate vulnerability of its population, in particular
for rural areas and communities. The Palestinian National Adaptation Plan and the initial national communication
to the UNFCCC have identified water and food security as the most vulnerable issues in Palestine, with knock-on
implications for all sectors. This is also highlighted in the Nationally Determined Contribution (NDC).
The geopolitical situation substantially reduces the Palestinian’s adaptive capacities, thereby compounding
climate vulnerabilities with anthropic constraints and limitations of access to water resources, in particular in the
Gaza Strip and in rural areas of the West Bank.
Palestine has one of the lowest per capita water availability in the world, with quality far below World Health
Organization (WHO) standards. The average domestic water consumption is only 72 liters per capita per day
(l/c/d) in the West Bank and 96 l/c/d in the Gaza Strip (availability of drinkable quality water is deemed to be half
that number), below the 100 l/c/d minimum recommended by the WHO.
The impacts of climate change identified at regional level or in neighboring countries broadly apply to the
Palestinian situation. Studies have attempted to model the impacts of climate change on Palestine’s water
resources: the regional climate model PRECIS (Providing Regional Climates for Impact Studies) with the
Intergovernmental Panel on Climate Change (IPCC) A1B emissions scenario (AR5), predict a decrease in
precipitations of 15% by mid-century and 23% by the end of the century, lowering per capita internal water
resources in Palestine to 67 m3 (cubic meter) by 2050 compared to 190 m3 in 2010.
United Nations Development Programme - UNDP’s analysis of climate vulnerability in Palestine highlights climate
risks as a humanitarian threat, placing the Palestinians within the policy realm of disaster risk management and
emergency response operations. Current high levels of food and water insecurity in Gaza and the West Bank are
forecasted to be exacerbated by climate change, on account of worsening food growing conditions (the agricultural
sector consumes over two-thirds of water abstracted or flowing from springs in Palestine) and a fragile water
supply infrastructure. This will have severe implications on the human health, social development and general
unrest in the Gaza Strip.
Combining population growth forecasts and regional climate change projections, it has been estimated
that Palestine will experience a water deficit of 271Mm3 (million cubic meters) a year by 2020. In the Gaza
Strip, each year, around 195 Mm3 are pumped from the coastal aquifer for the needs of the population and
agricultural activities (representing less than 30% of total usages), while the water annual natural recharge of this
aquifer does not exceed 60 Mm3 per year. As a result, the capacity of the aquifer is declining at high speed, leading
to significant intrusion of seawater into the only freshwater resource in the area, already heavily polluted by
fertilizers, pesticides and untreated sewage.
Water availability is crucial to the food security of Palestinians, in particular in Gaza. Agriculture in Palestine is
very dependent on precipitations: though irrigation is often the only option in this semi-arid territory and presents
a gross productivity 6 times that of rain-fed agriculture, only 25% of agricultural land is irrigated in Palestine.
Increasing aridity due to climate change (increasing temperature, decrease of precipitations, as well as sea level
rise) will increase the pressure on already over-exploited aquifers, with consequences on the quality of the water
(saline intrusions) and increases the risk of collapse of the system (irreversible deterioration of the aquifers). The
United Nations has reported 1 that the aquifer will irrevocably collapse by 2020 if no significant interventions
towards introducing nonconventional water resource such as wastewater reuse and desalination.
1Report on UNCTAD assistance to the Palestinian people: Developments in the economy of the Occupied
Palestinian Territory, 2015
Water availability for agriculture is also related to existing irrigation and cropping practices, which show relatively
low levels of efficiency. The widespread use of submersion irrigation in the area of the project leads to
overconsumption of water. The feasibility study also indicates that the cropping systems (in particular the low
proportion of tree crops) in place in the area also lead to higher levels of water extraction. Finally, the increasing
salinity of water in the aquifer, as a result of climate change (see climate change model Excel sheet, Annex 4), also
decreases the irrigation efficiency and generates higher volumes applied for the same result.
In the context of increasing aridity, maintaining the existing agricultural and rural livelihoods in Palestine and
Gaza (there is limited perspectives of growth in the agricultural sector, in the context of high demographic and
urban pressure on land in Gaza and instability of markets) depends on both securing access to sustainable water
resources, as well adapting irrigation practices and cropping systems on-farm.
For Palestine and its limited access to underground resources (because they are over exploited, for lack of
adequate public infrastructure for additional mobilization) treated waste water is about the only new resource
(compared to a baseline situation where it is going to the sea or to neighboring countries) that can be introduced
in the local context of irrigated agriculture to alleviate the pressure on the aquifers and therefore prevent rupture
scenarios, under the increasing effects of climate change.
Making use of non-conventional water resources, such as Treated Wastewater (TWW) is considered a
prerequisite for any sustainable development of irrigation in Palestine, thereby increasing the
profitability and enhancing climate resilience of Palestinian agriculture.
In Palestine, 50 Mm3 of TWW are generated every year. If a fraction of this, for example 60% (i.e. 30 Mm3) met
agricultural quality requirements and were used for irrigation, it would entail a 20% increase in water available
for Palestinian farmers, enough to irrigate an additional 3 500 ha and create 15 000 jobs (Source: Food and
Agriculture Organization of the United Nations - FAO). Whereas many other countries with dry conditions are
already making use of this resource for irrigation (up to 80% of the TWW can be reused), this potential has not
yet been realized in Palestine, mostly due to insufficient infrastructure and capacities to effectively utilize TWW
for irrigation.
Water and sanitation, drinking water and associated sewage networks and waste water treatment plants (WWTP)
projects, have multiplied over the years in Palestine, mainly through donor funding (KfW, WB, AFD, EU being the
main partners of the Palestinian government in this sector), but also by way of public funding. In Gaza, the North
Gaza Emergency Sewage Treatment (NGEST) plant (funded by WB, AFD and the EU), in the outskirts of Gaza City,
is up and running since March 2018, with a capacity of 36 500 m3/day (13.3 Mm3 per year). The NGEST plant will
alleviate the pressure on the existing WWTP (Beit Lahia), functioning at six times its design capacity and will help
solve the acute environmental and health hazards caused by the accumulation of waste water in Gaza.
The following exert from the Baseline Study On Water Quality & Public Health in The Gaza Strip (2015, Annex 3)
illustrates the acuteness and severity of the situation and actual health hazards related to water contamination in
Gaza:
“It is needless to say that sewage is the biggest reason for groundwater biological and chemical contamination in the
Gaza Strip. Only about 40% of the sewage generated in the Gaza Strip is properly treated. The percentage of
population served by sewerage systems has increased in the last two decades and currently reached around 80%,
leaving nearly half a million people unconnected to the sewage network and dependent on alternative means for
excreta disposal.
Reports show that 19% of groundwater, 27% of desalinated water and 20% of water network samples are
microbiologically contaminated by total Coliform while 13%, 14% and 12%, respectively, are contaminated by fecal
coliform bacteria. The water situation in Gaza is dire. The Coastal Aquifer, Gaza’s sole fresh water resource, is polluted
by the infiltration of raw sewage from cesspits and sewage collection ponds and by the intrusion of seawater (itself
also contaminated by raw sewage discharged daily into the sea near the coast) and has been degraded by over-
extraction. The water quality will be worse in the next few years and the aquifer will not be able to cover the people
water needs, where the water quality will not able to be used for any purposes (domestic, agriculture,…). Taking in
consideration the combined concentrations of both chloride and nitrate, it's clear that 3.8% of the domestic water is
only matching with WHO drinking limit, while the remaining 96.2% is out of limit. (p.67)
[…] findings indicate that the incidence of diarrhea as reported by health clinics is constantly increasing over the past
five years; almost doubled in five years. Also, hepatitis incidence rate is at the increasing trend (20.7 per 100,000
population to 73.3 per 100,000 in 2013)”
In the baseline situation, non-treated waste water is currently stored in precarious basins outside of Gaza City
(posing a threat to nearby populated areas) and transferred to infiltration basins, where it infiltrates into the
aquifer resulting in severe pollution of the groundwater of high water table (rejection of these waters to sea is not
an option, for environmental and geopolitical reasons), threatening the livelihoods and health of both rural and
urban population when using this highly polluted water for agriculture and drinking.
The commissioning of the NGEST plant offers the opportunity to increase water and food security in the Gaza strip
by generating an innovative, “new” and non-conventional resource for agricultural purposes, by infiltration in the
aquifer (after tertiary treatment), recovery of treated waste water (diluted in ground water then extracted by
wells), and development of an efficient irrigation scheme downstream. Infiltration of treated waste water in the
aquifer will both increase the quantity and the quality (depollution) of the groundwater, thereby increasing its
availability and suitability for agricultural purposes and, by the same token, preventing massive contamination
and subsequent proliferation of water-borne diseases within the population of Gaza and Jabalia cities and their
rural outskirts (an estimated 200 000 people would be affected positively by the project).
The cycle of production and reuse of TWW relies on an energy mix supplying the power for the functioning of the
NGEST WWTP, the Recovery scheme (which involves pumping from the aquifer) and to pressurize the drip
irrigation network at the end line. The current power concept consists of an external supply from the grid and on-
site generation from emergency generators with sufficient capacity to cover the load of the facility (estimated at 9
MVA). The overall power supply situation in Gaza is constrained due to general geopolitical circumstances and
options for extending existing supply system via the distribution network are limited because of cost of fuel for
the local power plant or due to difficulties in fuel availability, in particular the limitations to increase the supply
from cross-border sources.
Consequently, the Palestinian Water Authority (PWA) seeks, together with other responsible stakeholders (in
particular the Palestinian Energy and Natural Resources Authority, PENRA) to identify the most viable, long-
term sustainable power supply option for the NGEST facilities during its whole life-cycle, by combining
different sources of energy (electric grid, solar, wind, biogas, diesel), reducing greenhouse gas emissions
(see activity 1.2).
Closing the water cycle, by the reuse of treated water, calls for increased coordination between several
stakeholders (the Palestinian Water Authority and the Ministry of Agriculture, as well as PENRA, and EQA
(Environment Quality Authority), and the farmers benefiting from the project). Close and careful monitoring of
water quality of water used for irrigation or for recharge the aquifer will be guaranteed. Enforcing regulations for
the use of the treated water and monitoring of the quality and quantity of water in the aquifer will be key
challenges of the project.
C.2. Project / Programme Objective against Baseline
The Gazan Coastal Aquifer is the only source of fresh water for the population of the Gaza Strip. This aquifer serves
mainly as a source of domestic water and for irrigation of agricultural crops.
With one of the world’s highest demographic density (around 5 000 people/Km2) and population growth (around
3%/y), the aquifer is currently severely over exploited (extractions amount to more than 3 times the annual
recharged volume), leaving the population in an extreme state of vulnerability (domestic water availability is
already under the 100 l/capita/day threshold as defined by the WHO) if this trend was to be continued.
Climate change has a compounding effect on the local anthropic/demographic component of the baseline scenario,
with regard to the evolution of the situation of the water balance in Gaza and the future of its availability for
domestic and agricultural uses.
The following equation intends to model the baseline scenario with regard to water scarcity and seek out the
climate component of the growing vulnerabilities (health and economic) due to lack of water:
ΔWBAg/Δt = 1/Δt{ΔP - ΔETP (Ag+ΔAg) + ΔEff.irri} + 1/Δt{ΔDem + ΔAg + ΔInd}
Where ΔWBAg/Δt is the variation of the “usable” waterbalance (i.e. polluted and unusable water is not counted as
positive quantities) over Δt (the lifespan of the infrastructure financed through the project)
In a context of relatively high uncertainty at regional and local level, a no regrets approach calls for the adoption
of medium to worst case scenario assumptions for 2050 (Δt = [2018 - 2050]), which are detailed in the Excel sheet
in Annex 4. Using the available data and published predictions (also presented in Annex 4), it is possible to
characterize the contribution of each factor to the global trend of water scarcity in Gaza, as follows:
• ΔP is the evolution of precipitations over Δt, as a result of climate change. Rainfall is the only significant
factor of recharge of the aquifer and it is assumed it will decrease 15% (worst case scenario being 30%)
by 2050. This will lead to a decrease in the recharge from 60 to 51 Mm3/y as a result of climate change.
• ΔETP (Ag + ΔAg) is the evolution of crop demand for water (evapotranspiration) of the existing
agricultural area and of its variation over Δt (i.e. ΔAg), as a result of increasing temperatures due to climate
change. Predictions (IPCC, AR5 2014) show an increase in temperature expected to be + 2-3°C in the Gaza
Strip over Δt, which will cause an increase in crop demand for water (ETP) between 10 and 19% (see
calculation in Annex 4). Initial ETP in the baseline situation is estimated at 1 400 mm/y and the rate of
increase in crop water requirement (+ 15%) is applied to the total cultivated area in Gaza (10 000 ha)
because (i) for irrigated crops, higher ETP will translate in increased withdrawals from the aquifer; (ii) for
rain-fed crops, higher ETP will mean less recharge of the aquifer. Total crop demand for water will increase
from 140 to 161 Mm3/y as a result of climate change.
• ΔEff.rri represents the loss in efficiency of irrigation due to increasing salinity of the aquifer, as a result of
the sea level rise. Increase of sea level (up to +35 cm according to predictions for 2050) will further salinity
intrusions in the aquifer which will, in turn, degrade its quality from moderately saline (600 - 1 000 mg/l)
to highly saline (1 000 - 1 500 mg/l). This will have a negative effect on the efficiency of water for irrigation
purpose (more water needs to be applied to maintain the same yields and leaching practices are required)
by an estimated 25% with regard to baseline. This coefficient is applied only to irrigated areas and
generates an increase in crop requirements of 12 Mm3/y due to climate change.
• ΔDem is the evolution of domestic water consumption over Δt. Population is expected to double over Δt
and it is assumed that so is domestic water consumption, bringing it to 200 Mm3/y in 2050.
• ΔAg is the evolution of water usages in agriculture due to an increase in cultivated area or intensification
over Δt, which is deemed negligible in the case of Gaza.
• ΔInd is the evolution of water usages in the industrial sector over Δt, which is also deemed negligible in
the case of Gaza and its stunted industrial development.
In aggregating these factors together, it is possible to segregate the “Human” component (1/Δt{ΔDem + ΔAg +
ΔInd}), contributing a negative 100 Mm3/y to the water scarcity trend, from the “Climate” component (1/Δt{ΔP
- ΔETP (Ag+ΔAg) + ΔEff-irri}), contributing a negative 42 Mm3/y to increased water vulnerability for the
population of Gaza over the course of the next 30 years, i.e. 30% of the overall determinant of change in
the baseline scenario.
The project aims at limiting the compounding and amplifying effects of climate change on an already degraded
scenario of worsening water scarcity by bringing in new resources to the water balance and creating a closed cycle
of reused treated waste water for irrigated agriculture. This will enhance the resilience of agriculture and related
livelihoods in the Northern part of Gaza and, at the same time, alleviate the pressure on the aquifer and free
equivalent amounts of water needed for the needs of the population of the Gaza Strip. Thirteen million cubic
meters of treated waste water will be injected in the aquifer, thanks to the infrastructure provided through the
project, and channeled to an irrigation scheme (1 500 ha, 4 200 beneficiaries) nearby the NGEST facilities,
covering 100% of its needs. In a closed system, as that of the Gazan aquifer, where every drop is needed and used,
this additional amount secured for agriculture will free the equivalent amount for other uses, in particular
domestic – covering the needs of around 200 000 people. The replicability and scalability of the project in new
areas of Palestine, in Gaza Strip and West Bank and even abroad will be an important outcome of the successful
implementation of the project.
C.3. Project / Programme Description
As mentioned above, the launching of the NGEST WWTP and, in general, the current development of the Gazan
water treatment capacity, offer an important opportunity to bring an additional resource (with regard to the
baseline scenario whereby waste water is not treated and becomes a source of pollution for the aquifer) to the
water balance in Gaza and, therefore, increase the resilience of its population and reduce the vulnerability of
agricultural sector, in the context of climate change.
Objectives of the project
The project’s goal is to develop an integrated low-carbon water management scheme to reduce the impact
of warming temperatures, decreasing rainfall and increasing aridity due to climate change, and deliver
additional amounts of water usable for sustaining agriculture and increasing the resilience of a highly
vulnerable population in the Gaza Strip.
The outcomes specific to the project are as follows:
O1. Reduce the vulnerability of Gaza’s coastal aquifer and secure sustainability of access to domestic and
agricultural water;
O2. Promote climate resilient and water-efficient agriculture;
O3. Enhance the institutional and operational capabilities for integrated resilient water management.
Description
The project will deliver infrastructures immediately downstream from the NGEST WWTP that will allow the
recharge of the aquifer, using treated waste water (13 Mm3/year), its recovery by a network of wells, its storage
and its transfer to an irrigation scheme (15 000 donums ~ 1 500 ha of gross irrigated area; the net area is
estimated at 1 200 ha) located in the vicinity of the WWTP.
The project has three main outputs and its theory of change is described in Annex 5.
The technical and feasibility studies implemented for the preparation of the project have been conducted over a
period of 5 years due to “stop & go’s” in the context of intermittent degradation of the security conditions in Gaza.
AFD and Palestine have financed updates of the initial studies implemented in 2013 (design of the recovery and
irrigation schemes and ESIA/ESMP/RAP related to these infrastructures): the 2017 version of the design study is
presented in Annex 6; the original ESIA/ESMP/RAP and its update are located in Annex 9-Feasibility Studies.
The design study for the photovoltaic (PV) scheme is also presented in Annex 9.
OUTPUT 1: PRODUCTION OF ADDITIONAL QUANTITIES OF WATER FOR AGRICULTURAL USE

Main outcomes from this output are:
- Recharge of the aquifer with additional “clean” water coming from the WWTP (tertiary treatment is
implemented through the infiltration process) usable in agriculture;
- Depollution of the aquifer and environmental and sanitary impacts of the existing pollution on the Gazan
population (see ground water modelling outputs illustrated hereunder).
The red area shows the progression of

underground pollution due to the
infiltration of untreated wastewater
and its progression towards the
urbanized areas. The infiltration basins
cas be distinguished at the origin.
The following illustration presents the Managed Aquifer Recharge (MAR) approach that will be put into place for
NGEST:
This image shows the results of MAR in
the project scenario and, in particular
the depollution effect.
Activity 1.1 An additional water resource is created by Managed Aquifer Recharge

Input 1.1.1 Rehabilitation of 7 infiltration basins for recharge of the aquifer
The belated entry in service of the NGEST WWTP (in 2018 instead of 2015), the dangerous accumulation of raw
waste water in the Gaza Strip and the inexistence of alternate solutions in the context of Gaza, has constrained
Palestine in transferring the waste water from the Beit Lahia WWTP to the infiltration basins located in the NGEST
perimeter. For 8 years, raw waste water has therefore been infiltrated in the aquifer, creating a pollution plume
underground, as well as accumulating residue and clogging the infiltration basins.
The World Bank (WB) has undertaken to rehabilitate 2 of the 9 basins and the project will complete the works
(rehabilitation of the 7 remaining basins) to deliver a fully operational infiltration scheme for the recharge of the
aquifer. Since this input is 100% under AFD grant financing, tender documents have been published in spring 2019
and contractor is currently being selected.
Input 1.1.2 Delivery of the recovery scheme
The TWW reuse scheme relies on a tertiary treatment obtained by infiltration through sandy soil and the recovery
of the water, stored in the shallow section of the aquifer, by a network of 28 wells located 500 m downstream from
the infiltration point in a concentric formation. The recovered water will converge, through a network of pipes
connecting the wells to 2 reservoirs of 4 000 m3 each, in order to manage the distribution according to the needs.
The organization of the full NGEST scheme is presented in the final design study presented in Annex 9. Technical
specifications are detailed in the same Output of the design study as well as precise location of wells, which are
also presented in the ESIA and RAP.
The first part of this investment (14 recovery wells and 1 reservoir) has been completed under WB financing; the
project will implement the second phase of this investment (14 remaining wells and an additional reservoir).
Activity 1.2: Water – Energy Nexus, development of renewable low-emission energy solutions
Input 1.2.1 Development of solar energy capacity for the NGEST WWTP and treated waste water (TWW) reuse
complex
Securing the treatment of waste water, the recovery of the clean water from the aquifer and its transfer to
agricultural lands depends on the performance of the NGEST plant and of the Recovery Scheme (RS) and, in
particular, on the reliability of its power supply (strongly constrained in the baseline by restrictions on access to
electricity –generated by diesel generators- due to the geopolitical situation).
The water-energy nexus has been part of the NGEST implementation strategy since the inception, as co-generation
facilities, using the biogas released by the sludge produced by the WWTP, are already in place (previously financed
by AFD-WB-EC). The present Project will take the water-energy nexus one big step further by taping in a
renewable and abundant source of energy in the context of Gaza: solar radiations.
The project, in the framework of a partnership between the PWA, PENRA and the Gaza Electricity Distribution
Company (GEDCO), will set up a total surface area of 8.5 ha of ground-mounted photovoltaic (PV) panels within
the premises of NGEST WWTP (2 ha – PVc1), around the recovery scheme (3 ha – PVc2) and in the Restricted
Access Area (RAA) adjacent to NGEST (3.5 ha PVc3) 2. The three solar parks, of a total installed capacity of 7.5
MWp, will produce an average useful 9 411 MWh/year in comparison with the 10,659 MWh/year needed for the
overall reuse scheme (TPS + WWTP + Recovery + Irrigation). It is important to highlight that electricity production
from PVc1 and PVc2 will be used to directly supply the needs to operate the WWTP and the Recovery & Irrigation
site and only the excess of energy will be fed to the electricity grid. PVc3 will feed all its production to the electricity
grid and will be delivered back to the system (to cover needs when the solar parks are not producing) through the
net metering mechanism.
By adding the PV fields to the NGEST system, the annual direct supply from the grid in its first year of operation
will be reduced by 59 % and the required annual energy from the emergency diesel is taken down by 45 %, leading
to a direct saving of around 4.7 million liters of diesel fuel per year. Accordingly, the PV share in the energy mix
feeding NGEST system on the first year of operations should reach 38 % of the total annual power consumption,
diesel 12 %, grid electricity 20 % and biogas 30 %.
The NGEST WWTP + RRS power supply without PV and with the current supply options lead to an overall
Levelized Cost of Energy (LCOE) of 0.24 USD/kWh. NGEST with the PV installed will have an overall LCOE of 0.155
USD/kWh, making it much cheaper than the “no PV situation”. This will generate savings amounting in 700,000
USD in the first year, together with a gain of 1,500,000 USD from net-metering (compensation of electric
consumption from other sites by feeding extra PV power to the grid). Over the lifespan of the project, the gain
should be around 36,000,000 USD in present value at 5 % discount rate.
The three PV schemes will produce a total of 10 519 MWh/year, both for supply of energy to the WWTP (1 752
MWh/y) and recovery scheme (2 479,5 MWh/y), as well as supply to the grid (6 288 MWh/y), displacing high
carbonated generation from diesel generators and from the grid (diesel power plant in Gaza and Israeli electricity).
This will lead to emissions reduction of 5 561,95 tCO2e/year over 30 years (GHG calculations are presented in
Annex 21).
OUTPUT 2: DEVELOPMENT OF IRRIGATION, WATER EFFICIENCY AND CLIMATE RESILIENT AGRICULTURE

Main results from this output are:
- Agricultural farms and livelihoods are maintained in Northern Gaza ;

- Improved agricultural practices and more efficient use of water are extended to increase the resilience of
agriculture to the effects of climate change and implementing climate resilient agricultural practices.
This output consists of the delivery of an irrigation scheme over a gross irrigable area of 1 500 ha as well as
services provided to the farmers/water users aiming at improving their practices, thereby enhancing their
resilience and reducing their vulnerabilities. The beneficiaries are all the households end users of the water that
will be delivered by the irrigation scheme. They are already identified and aware of the project.
Activity 2.1: An improved water service for irrigation is brought to 4 200 beneficiaries over 1 500 ha
Input 2.1.1 Delivery of an irrigation scheme, 1 500 ha
2This land belongs to NGEST but is located within the ARA alongside the boarder; Israeli authorities have
communicated their willingness to authorize the implantation of PVc3 on that land adjacent to NGEST facilities.
This is an example of the high level of coordination existing between the project and Israeli authorities, which
have shown willingness to collaborate in the execution of all phases of the NGEST programme.
The project will deliver a distribution network in order to service two irrigated sub areas of 500 ha and 1 000 ha
of gross irrigable area located around the WWTP (see Annex 9, Design Study), corresponding to a total of 126 km
of pipeline and the upgrading of the booster station in order to support drip irrigation practices. Project areas
were selected based on the potential irrigated area around the NGEST facilities, delimitating an irrigation scheme,
on which farmers are present in the baseline. On-farm investments will be included in the costs supported by the
project but will be reimbursed (with a subsidy rate) by the farmers over a 3 years’ period in order to set up an
O&M fund for the WUA. The delivery of the irrigation scheme will take place in two lots, one of 500 ha and another
of 1000 ha, plus one lot for the provision of on-farm equipment (drip irrigation). Tendering documents for the
first lot of 500 ha are currently being prepared by PWA, since it is an investment 100% under AFD grant financing.
Also are tendering documents for the Works supervision contract associated to these works.
The NGEST WWTP, which is operating since March 2018, generates 35 600 m3/day of treated water, i.e. 13 million
m3/y; this represents allocations of about 10 000 m3/ha/y which is sufficient water to sustain agricultural needs
(horticulture and vegetable growing) in Gaza. In the current situation, pumping in the aquifer is done through
private wells which partially irrigate the 1 500 ha of interest to the project. Each well is owned and managed by
shareholders who are the main users of the water and pay the real cost of its extraction (mainly the cost of diesel,
O&M); non-shareholders may have access to water, but will pay an additional fee apart from the cost of extraction.
In any case, water for irrigation is not available on a daily basis and water turns are usually of 10 to 12 days.
The project will support the creation of a Water Users Association (WUA), to which the recovered water will be
delivered and sold to and which will have the responsibility of equally distributing it to all users through the
application of a transparent and approved tariff. The design of the irrigation scheme to be delivered by the project
will allow availability of water for all farmers, every day, 12 hours per day. The drip irrigation systems installed
by the project will increase on-farm productivity and generate more crops for the drop and consequently generate
more income for the farmers.
Activity 2.2: Increased climate resilience of agriculture, adaptation of cropping systems to climate change
Input 2.2.1: Extension services to farmers
In the baseline situation, farmers have little access to extension and advisory services and in the context of limited
and fluctuating access to water, cropping patterns practiced by farmers show low levels of profitability and
efficiency with regard to water. The feasibility study of the project has shown how changes and transformations
at farm level can improve the profitability of agriculture and save water.
Nevertheless, these changes cannot be imposed on the farmers and will need to be adapted to the needs on a case
by case basis through the provision of professional extension services, to be provided through the project
(technical and economic advisory; capacity building by demonstrations; farmer field schools; training).
The preliminary data obtained through hydrological modeling, as well as analysis of the quality of water extracted
from the aquifer show that the water recovered from the wells will be fit for all agricultural uses and according to
Palestinian law, the recovered water is equivalent to groundwater, on which no restrictions are imposed (contrary
to treated waste water coming directly from the treatment plant and used for irrigation). The high level of nitrogen
in the water prevents it from being drinkable but constitutes an advantage for agricultural use (saving equivalent
amounts of fertilizer).
Finally, the use of treated and disinfected effluent sludge from the NGEST WWTP will be promoted by the project in
order to substitute the use of chemical fertilizers for environmental and economic reasons (in line with Palestinian
standards and EQA approval).
Support to on-farm activities is the mandate of the Ministry of agriculture of the Palestinian Authority, which will
seek technical assistance from the Food and Agricultural Organization of the United Nations in order to perform
this task in the framework of the project. The FAO will provide technical and training inputs on development of
climate resilient agriculture, crop and yield quality control and knowledge management with regard to best
practices for reuse of TWW. More details on FAO’s input to the project overall (in outputs 2 and 3) are presented
in Annex 10.
Input 2.2.2: Subsidy of on-farm water saving equipment
The provision of the above technical extension services is an opportunity for Gazan farmers to transform their
practices and the ways they manage water at on-farm level in order to adapt to water scarcity and compounding
effects of climate change. These transformations nevertheless require a concomitant mix of services to farmers
and availability of water-saving-equipment, in particular for drip or sprinkler rather than surface irrigation.
Surface irrigation (based on canals which are dug by the farmers or workers) typically requires no equipment and
only relies on work force, but suffers from high levels of water losses in canals, in terms of:
1. Evaporation from the water surface
2. Deep percolation to soil layers underneath the canals
3. Seepage through the bunds of the canals
4. Overtopping the bunds
5. Bund breaks
6. Runoff in the drain
7. Rat holes in the canal bunds
As shown in the figure below (source: FAO):
Surface irrigation is widespread in Gaza, as in most low income countries where irrigation is practiced, but its low
efficiency is one of the main obstacles to adaptation of the farming systems to growing water scarcity because of
climate change. Other irrigation methods exist, which show greater water efficiency (see table below), but require
specific equipment:
Irrigation methods Field application

efficiency
Surface irrigation (border, furrow, 60%
basin)
Sprinkler irrigation 75%
Drip irrigation 90%
(Source: FAO)
A typical drip irrigation system is, according to the FAO, generally composed of the following components:
• The pump unit takes water from the source and provides the right pressure for delivery into the pipe
system.
• The control head consists of valves to control the discharge and pressure in the entire system. It may also
have filters to clear the water. Common types of filter include screen filters and graded sand filters which
remove fine material suspended in the water. Some control head units contain a fertilizer or nutrient tank.
These slowly add a measured dose of fertilizer into the water during irrigation. This is one of the major
advantages of drip irrigation over other methods.
• Mainlines, submains and laterals supply water from the control head into the fields. They are usually
made from PVC or polyethylene hose and should be buried below ground because they easily degrade
when exposed to direct solar radiation. Lateral pipes are usually 13-32 mm diameter.
• Emitters or drippers are devices used to control the discharge of water from the lateral to the plants. They
are usually spaced more than 1 meter apart with one or more emitters used for a single plant such as a
tree. For row crops more closely spaced emitters may be used to wet a strip of soil. Many different emitter
designs have been produced in recent years. The basis of design is to produce an emitter which will provide
a specified constant discharge which does not vary much with pressure changes, and does not block easily.
Conversion to drip irrigation combined with the appropriate capacity building of farmers and adaptation of the
cropping systems (which the extension services provided by the FAO will ensure) can divide by 2 or 3 the water
losses in Gaza, and is therefore a key adaptive measure to tackle compounding effects of climate change on water
scarcity.
Nevertheless, investment by the farmers in these technologies (widely spread in Jordan) and appropriate training
and extension services are scarce in Gaza. This is mainly explained by the high cost of the appropriate equipment
(estimated at 3 000 EUR/ha) and the relatively low profitability of agriculture in the area.
Observation of similar contexts in Israel, Jordan or North Africa shows that promoting water efficient irrigation in
Gaza corresponds to a no-regrets approach to adaptation to climate change, as it appears relevant and necessary
in all future scenarios, including the present situation.
The project intends to provide a “push” towards conversion of current irrigation practices to more efficient ones
(sprinkling and drip) by financially supporting it, through the pre-financing of 100% of the cost of the equipment
needed for it to happen (along with training and extension services mentioned above). This pre-financing will be
delivered to farmers that will have confirmed their membership to the Water Users Association (WUA) and have
agreed to reimburse the amount invested by the project for on-farm equipment, over a period of 5 years. The
proceeds of these reimbursements will serve to constitute the WUA’s Operation and Maintenance (O&M) and
investment fund, which is an important element of the project’s Exit Strategy.
Input 2.2.3: Gender, land tenure and irrigation – a gender-responsive approach to agricultural resilience to climate
change
A Gender Action Plan (GAP) has been developed and is presented in Annex 12. The GAP will be the overall guiding
document for the mainstreaming of gender in relation with all outputs of the project. The main specific inputs
related to gender are detailed in this section, among which that related to land tenure and irrigation.
In Gaza, land tenure is more in favor of men, as a result of cultural practices, social customs and traditions. This
reality is strongly embedded in a relatively rigid and complex cultural apparatus, which the project will have no
power to change entirely.
In relation specifically with the development of irrigation in the area, the project will investigate (through an initial
diagnostic during inception phase) opportunities whereby women could gain access to the land they own or
improve their use of land they already have access to, by increased access to water and technical services. These
opportunities will be sought through a process of community involvement, whereby family and community
members become instrumental in establishing these channels of improved access to land. Of course, the first step
of the community involvement around the issue of “irrigation and gender” will be to mobilize the women in the
communities, in order to understand their needs, objectives.
Through a diagnostic and community mobilization work, it is anticipated that a group of women willing to embark
on a process of improved access to land and water will be formed, sponsored by the community. This group of
women will be supported by the project (namely through a methodology developed by the FAO 3, that will be
adapted to the context of Gaza) through positive action with regard to access to water (see hereunder,
participation of women to the governance of the WUA) and technical services in order to develop intensive and
quality cropping (gardening) on their micro-plots of land.
As a second step, if possible/needed/wished, groups of women will be supported in forming into cooperatives in
order to market their products or create food banks for their families, according to their objectives.
This activity will be coordinated by the Ministry of Agriculture and FAO and will involve local civil society and
women non-governmental organizations. In terms of methodology, the GAP will be implemented using inputs
from the FAO (see Annex 10) and particularly from the International Union for Conservation of Nature- IUCN’s
training Manual on Gender and Climate Change 4 . Civil society and WNGOs will not be EEs. They may be
recruited or selected to support the implementation of this input.
OUTPUT 3: MANAGEMENT OF THE WATER CYCLE AND CAPACITY BUILDING OF STAKEHOLDERS
Main expected results from this output are:
- Improved water governance (co-management with users) and increased water use efficiency in the
context of growing aridity and increased demand due to climate change;
- Sustained operation and maintenance of adaptation infrastructure.
This output represents the institutional aspect of the project, which, in the context of « reuse of waste water » and
its multiple stakeholders and need for coordinated action, is of particular importance.
3 See : www.fao.org/3/a-be879e.pdf
4 https://portals.iucn.org/union/sites/union/files/doc/training_manual_on_gender_and_climate_change.pdf
Activity 3.1: Strengthening of PWA in its role of coordination and quality control of the process of reuse of
treated waste water
Input 3.1.1: Technical assistance
The PWA is the main implementing agency of the project and will be responsible for all the infrastructures that
will be delivered through the project; for the establishment of the irrigation scheme (in particular the on-farm
investments) and the “soft” components, it will coordinate with the ministry of agriculture and the FAO (see Annex
10).
A technical assistance (TA) will be provided to the PWA for the duration of the project. The TA has been designed
with the PWA in order to ensure progressive transfer of tools and know-how within the project time frame of five
years. Indeed, the PMU is well staffed and has already benefited from several capacity building activities since the
NGEST system and associated projects have been initiated (see details in section C.4). Main issues needing support
identified by PWA are:
- Coordinating actions of the implementers: MoA/FAO and PWA;
- Setting-up the M&E system for water quality for irrigation and for the whole project implementation
(including coordination with MoA/FAO);
- Stakeholders communication: implementing the MSEP and coordinating messages to different
stakeholders (including beneficiaries);
- Some specific expertise on a short term basis, such as ESMP and RAP implementation, delivery of on-farm
irrigation equipment, Gender action plan implementation.
In the context of Palestine and of the high professional level of the PWA, there is no need for full time TA for the
duration of the project. Once all tools and procedures will be implemented and transferred to the PMU, it will
gradually be converted from full-time into backstopping support and short term expertise on an ad hoc basis, for
the remaining duration of the project.
This TA will be integrated within the PMU at the PWA in Ramallah and Gaza. The corresponding services will be
acquired through an international bidding process.
Furthermore, the PMU will be supported in Works supervision by specialized contractors.
Tendering documents for Technical Assistance are currently being prepared by PWA (the activity is 100% under
AFD grant financing).
Input 3.1.2: Setting-up of a water quality monitoring and control system
The PWA, in coordination with EQA, will be in charge of establishing and implementing monitoring procedures to
supervise the water infiltrated in the aquifer and that recovered through the wells downstream in order to
guarantee the quality of the water delivered to the irrigation scheme. The system will rely on 15 monitoring wells
equipped with measurement probes, 5 of which will be financed through the project. The project will also support
the upgrading of the laboratory located at the NGEST WWTP and the capacity building of the staff employed in the
laboratory in charge of performing the quality tests.
The monitoring system is a central piece of the ESMP of the project and will provide the information and data
necessary to sustain a quality and transparent communication and dialogue between the water provider and the
end-users in order, namely, to fine tune agricultural practices and cropping patterns to quality and quantity of the
water delivered to the irrigation scheme.
A Groudwater Quality Monitoring Plan will be put into place, based on the Palestinian/Jordanian guidelines for
irrigation water. For heavy metals, a stricter standard will applied (WHO/EU standards for Drinking Water) in
order to follow a zero risk policy. These standards and the full Groudwater Quality Monitoring Plan are presented
in Annex 23. The Water Quality Monitoring Plan will pay special attention to the most hazardous contaminants
(e.g. Hg and B). If the levels of these elements are close to the permissible limits, those elements should also be
periodically tested in the soil in order to control accumulation. If soil samples present values exceeding
internationally recognized standards, boron and mercury shall also be tested in plants to control absorption,
bioaccumulation and possible health hazards for consumers.
The laboratory and related equipment to be financed through the project will increase the monitoring autonomy
of PWA and allow throurough and intensified monitoring of water quality for the duration of the project, prior to
and during the activation of the recovery wells and distribution of water to farmers. Once the laboratory is up and
running, the WQMP will be put into place.
Activity 3.2: Exit Strategy and Transfer of O&M to Water Users
As per the 2014 Water Law and recently approved by-laws on the Water Users Associations (2018, see Annex
13), hydraulic infrastructure must be jointly managed between the public sector and the users themselves and,
when possible, be transferred to full management by the users. This co-management or co-operation has both an
institutional (establishment and capacity building of a WUA) and financial dimension (cost-sharing of investments
and O&M) that gives birth to a transaction between a water provider and a water user, at a certain tariff and to a
set of rules and procedures for the management of the infrastructure.
Several co-management scenarios exist and determining the appropriate one in the context of the project is the
result of a consultation and feasibility process (including a tariff and “willingness to pay” study) that will be
undertaken, in the first few months of the project with the support of the FAO (see Annex 10), locally with the
farmers/water users/land and well owners of the irrigation scheme.
A possible scenario, that will necessarily have been tested and adapted through the process described above, could
be as follows:
1. The PWA would own (and for the first few years, also operate) the Recovery and Reuse Systems with the
ultimate goal of transferring the operation and management of the irrigation scheme to the Water Users
Association (WUA);
2. This would imply that:
- PWA would own the Reuse System, and operate it for the first 3 years of the project;
- During the first three years the WUA and Ministry of Agriculture in addition to PWA would receive intense
capacity building;
- After the first three years of the project, PWA will continue operate the recovery scheme until the
functional establishment of the National Water Company (NWC) and the WUA would assume operation
and management of the Reuse scheme;
- PWA would continue to own the irrigation scheme but would lease them to the WUA.
3. The farmers will own and be responsible for operation of the On-Farm System (drip irrigation network), with
the support of the WUA helping to coordinate farmers for technical assistance and capacity building with modern
irrigation techniques and the proposed cropping pattern.
In financial terms, the sustainability and replicability of the project depends on the involvement of various donors,
government and farmers, as per their capacity to cover the following costs:
(1) Capital Investment for the Water Recovery Scheme;
(2) Capital Investment for the Water Reuse (irrigation) Scheme up to Farm’s Gate;
(3) O&M costs for the Water Recovery Scheme;
(4) O&M costs for the Water Reuse (irrigation) Scheme;
(5) Capital Investment for On-Farm’s Development.
The preferred scenario involves Capital (1, 2 and 5) and O&M subsidies from the Government, in a context of high
vulnerability of the population. Costs (1) and (2) will be paid by the Government/Donors. Costs (3) and (4) would
be subsidized by the Government only until Farmers have paid back cost (5). Farmers are expected to pay for the
development of their own farm. All other costs are paid by the Government/Donors for the first 3 years (i.e. the
time it takes for the farmers to be able to pay back the improvement of their farm). After that point, farmers will
be responsible for paying O&M costs for the whole system (evaluated tariff at .33 USD/m3 and would need
validation by the Water Sector Regulatory Council, WSRC, as per the 2014 water law).
Input 3.2.1: Identification and establishment of the co-management scheme – Structuring and capacity building of a
WUA
Any scenario of co-management to be established during the lifetime of the project implies that:
- The WUA to be created will be rapidly functional and have the adequate level of capacities to dialogue with
the water provider and properly negotiate the financial and non-financial conditions whereby effective co-
management and cost-sharing will enter into force;
- The farms, constituting the economic entities using the water, have been sufficiently supported by the
project – and first economic outcomes of this support to be observed- in order to create the necessary
resources and incentives to participate in the costs of O&M of the scheme.
Setting-up and support to WUAs is the mandate of the Ministry of Agriculture of Palestine; for the purpose of this
project, it will be assisted in its mandate by the FAO, as its implementation partner, through which other
institutions and NGOs may also be involved.
Input 3.2.2: Integration of women in the governance bodies of the WUA
In order to support change with regard to access of women to land and water, it is essential that positive action be
taken to ensure that women are represented in the bureau of the WUA and have effective means of taking part in
the decision making with regard to water allocations.
Activity 3.3: Communities are empowered and supported, in the context of the conflict in Gaza
Input 3.3.1: Diagnostic and analysis of the conditions of restoration of unused land within the irrigable area
As it is the case in other parts of Palestine, in particular in occupied areas of the West Bank, the protracted conflict
situation has consequences on the state of mind and psychological welfare of the populations, affecting negatively
human interactions within the communities (capacity to resolve conflicts and to work together) and also
households. In turn, this situation has implications, in the project area, on the capacity of farmers to make use of
their land and to work together in community-based or collective water management (WUA) and agricultural
(cooperatives) activities.
This situation and its complexity will be analyzed during inception by the FAO in order to understand the
determinants of maximizing the irrigated area and agricultural production. This diagnostic study will involve
household surveys for all beneficiaries of the project, including economic and social analyses of their situation.
Input 3.3.2: Psychosocial support and strengthening of community and household bounds
As suggested above, transfer to users of hydraulic infrastructure and community based organizations will have a
chance to work and perform only if the women and men that constitute them are capable of interacting positively
to reach a common goal. All processes related to changes in practices, in particular for adaptation to climate change
or change in terms of gender will not take place spontaneously. This is particularly the case in the context of Gaza
and when a common pooled resource is at stake. Community and collective work leading to those changes requires
changes in the mindset of people and an ability to join forces, to work together: this is not possible in a context of
protracted conflict, without psychosocial support. This type of support is then catalytic and quintessential to
successful adaptation strategies.
In the context described above, and based on a more detailed baseline study to be performed during the inception
phase, the project will design and provide a psychosocial support package to the communities including collective
and individual services aiming at re-boosting the community dynamics. A particular set of services and activities
will target women and their position within the family – linking with the issue of their access to land described
above. This activity will therefore be strategic for and closely linked to the implementation of the Gender Action
Plan.
This support will be delivered through the FAO, which will mobilize other specialized organizations.
Activity 3.4: Capitalization of the outputs/outcomes of the project for replication and upscaling in Palestine
Input 3.4.1: Intellectual services for capitalization
The project will help deliver the first large scale reuse of waste water scheme in Palestine. The process of its
establishment and the quality of its related services, outputs and outcomes will need to be documented, analyzed
through independent expertise, in order for the experience to be evaluated with credibility and, eventually,
replicated and/or up-scaled (the overall waste water treatment capacity of Gaza will keep growing over the years).
The project will therefore provide resources to perform such intellectual services for capitalization during the
project life time, including a mid-term and final evaluation, and the results could help updating the incoming NDC,
for instance.
C.4. Background Information on Project / Programme Sponsor (Executing Entity)

The PWA is a public entity directly attached to the Presidency of the Palestinian Authority; its mission is to
manage, develop and protect water resources for Palestinian citizens, while respecting the environment.
According to the 2014 Water Law, the PWA is in charge of defining sectoral policy and is responsible for
conducting the reform process according to a strategic three-year plan. The plans involves establishing a
National Water Company to manage all water resources, a Regional Water Utilities institution to efficiently
manage water distribution and Water User Associations in collaboration with the Ministry of Agriculture, which
will be responsible for managing the water irrigation infrastructure. It is important to note that the by-law for
Water User Association was proposed by PWA and approved by the Palestinian Cabinet in April 2018.
The PWA has headquarters in Ramallah and Gaza, as well as representatives in all governorates. A Project
Management Unit (PMU) was set up in 1997 within the PWA to manage all projects implementation financed by
donors or by the Palestinian Government. The PMU in Gaza has so far brought together 15 staff members,
including 11 engineers (mechanical, civil, environmental, water, and wastewater), and one Financial Manager
for the implementation of NGEST WWTP and the first batch of the Recovery Scheme. The PMU in the Ramallah
HQ includes a Financial Manager and Procurement Expert to monitor the activities in Gaza and to liaise with
other PWA departments (Procurement Department and Financial Controllers within the Palestinian Ministry of
Finance). This PMU participated in an extensive capacity building program in 2011-2013 through the World
Bank, which helped it streamline its financial and procurement processes to satisfy both the Palestinian
procedures as well as international donors’ reporting requirements. Several major projects where implemented
by the PWA/PMU in Gaza such as North Gaza Emergency Sewage Treatment program (NGEST – 75MUSD)
financed by the World Bank, EU, AFD, SIDA and other donors; the ongoing Wastewater treatment Plant at al
Bureij (35 MUSD) financed through the KfW. Within the PWA strategy (2017-2022), the PMU in Gaza will form
the core team for the future National Water Company.
Thanks to comprehensive working sessions between the PMU/PWA Director and the AFD, the PMU/PWA team
has been adjusted for this Project’s needs. It will be responsible for all tendering activities for capital
investments, recruiting international technical assistance for project management support, and for ensuring the
financial management of the Project. The Chairman of the PWA has officially appointed each member of the PMU
as per the table below.
This team will be responsible for the operation and maintenance of NGEST WWTP and the first tranche of the
Recovery Scheme, as well as the implementation of the Project. As a result, salaries and operational costs of the
PMU will be partly funded by the Project, as presented in the table below. The remainder will be financed by the
World Bank budget support.
Furthermore, the PWA will prepare a note describing the institutional set up for O&M of all NGEST facilities
(WWTP + Recovery and irrigation scheme), as a condition precedent to the first disbursement of AFD’s financial
contribution to the Project. This note shall include a cost analysis of O&M, including: fixed costs (e.g. labor) and
variable costs (e.g. energy), as well as provisions for renewal of the irrigation scheme components (pipes,
pumps…), and a discussion of how the costs will be recovered through different scenarios involving the
participation of the farmers, the WUA, and relevant Palestinian Authority institutions. Finally, this note will
appraise the scenario presented in Activity 3.2 and is part of the Exit strategy for the project.
Position within the PMU Salaries and operational costs financed by the
Project
1- PMU Director (based in Ramallah) The PMU Director will ensure overall coordination of
the project and link with the PWA Chairman. His
contribution is not financed by the project
2- Project manager and Material access coordinator 2019 : 100%

(based in Ramallah)
2020 2023: 50%
3- Procurement Manager (based in Ramallah) 2019 : 100%

2020 2023: 50%
4- Financial Manager (based in Gaza) 2019 : 100%

2020 2023: 50%
5- Site Manager - Environmental and Social + 2019 : 100%

Recovery scheme supervision (based in Gaza)
2020 2023: 50%
6- Site Manager - Electrical Engineer (based in Gaza) 2019 : 100%

2020 2023: 50%
7- Site Manager - Civil Engineer + Irrigation scheme 2019 : 100%

supervision (based in Gaza)
2020 2023: 70%
8- Site Manager - Rehabilitation of Effluent (based in 2019 : 100%

Gaza)infiltration Basins/Surveyor/Quantity
Surveyor 2020 2023: 50%
9- 1 receptionist/secretary (based in Gaza) 2019 2023 : 100%
10- Operator 1 (based in Gaza) 2019 2023 : 100%
11- Operator 2 (based in Gaza) 2019 2023 : 100%
12- Guard 1 (based in Gaza) 2019 2023 : 100%
13- Guard 2 (based in Gaza) 2019 2023 : 100%
14- Driver (based in Gaza) 2019 2023 : 100%

For activities located outside the mandate of the PWA, related to on-farm activities, the Ministry of Agriculture
(MoA) of the Palestinian Authority will take over the implementation as an Executing Entity. The Ministry
structure includes the Directorate General for irrigation and the General Directorate for Extension services that
are providing services to the framers through their district offices. However, within the particular context of the
Gaza Strip, the MoA designated three directors in Gaza Strip to coordinate with PWA for this project
implementation and the Ministry will seek the assistance of the FAO as its Implementing Partner to implement
Outputs 2.2, 3.2 and 3.3; based on the FAO know-how and previous experience in Gaza, the FAO will engage Civil
Society Organizations (CSOs) according to its sets of rules and regulations to implement parts of the tasks within
2.2, 3.2 and 3.3. MoA and FAO have a pre-existing partnership. The MoA will mobilize the FAO under this
partnership umbrella and sign a tripartite project agreement between AFD, MoA (representing Palestine) and
FAO for the joint implementation of the aforementioned activities.
FAO’s coordination office for the West Bank and Gaza Strip programme is operating since 2002 and implements
its programme through a team of 45 employees (35 nationals and 10 internationals) in 3 offices (Jerusalem,
Ramallah and Gaza). Having developed strong partnerships with a large number of stakeholders in the
Palestinian agriculture sector, FAO is a central stakeholder in capacity development and for the facilitation of
institutional coordination between public, private and non-governmental actors in the agriculture sector. In
close partnership with the Ministry of Agriculture, FAO recently supported the development of the Revised
National Standards for the Use of Reclaimed Wastewater for Irrigation, which defines the required qualities for
different types of crops. Building on this experience along with experience of similar work from areas with
similar climate and socio-economic conditions, FAO is uniquely positioned to address the enabling conditions for
effective and sustainable TWW in a comprehensive manner, which requires taking a combination of legal,
regulatory, socio-cultural, economic, environmental and technical factors into consideration. FAO in Jerusalem
works also closely with FAO Head Quarters in Rome and FAO RNE (Regional office for the Middle East) in Cairo,
which have built a strong expertise in TWW and water management in the MENA region.
In conclusion, All inputs will be implemented by the PWA, with the exception of 2.2.1, 2.2.3, 3.1.1, 3.2 and 3.3,
implemented by MoA-FAO.
C.5. Market Overview (not applicable)

Describe the market for the product(s) or services including the historical data and forecasts.
Describe the competitive environment including the list of competitors with market shares and customer base and key
differentiating factors (if applicable).
Provide pricing structures, price controls, subsidies available and government involvement (if any).
C.6. Regulation, Taxation and Insurance (if applicable)

Construction permits: they are usually delivered by Municipalities, but Government institutions are exempt from
this procedure.
Environmental permit: EQA has approved the updated version of the ESIA; updated version of the RAP will be also
submitted to the EQA.
Land titles: the NGEST project land titles are lands registered in PWA benefit as governmental land that was an
acquisition of endowment land registered under the Waqf Ministry since 2013 (reference PA Council of ministers
Decree 4/284/11 for the year 2013).
Taxation: As AFD financing agreements signed with the PA are exempt from taxes and duties, the funding will get
the required exemptions during the implementation as per the PA Tax Regulations.
Insurances: Following the PA procurement law and the signed funds financing agreements, Contractors are always
requested to furnish adequate insurance policies within their contracts for the duration of the implementation
period.
C.7. Institutional / Implementation Arrangements

Contracting authority
AFD will sign a subsidiary agreement with the Ministry of Finance and Planning in Ramallah (representing the
Palestinian Authority). This agreement and the related project documents will specify the tasks dedicated to the
PWA and to the Ministry of Agriculture. The project will be implemented by two Executing Entities (EEs): the PWA
and FAO.
For the implementation of the project, AFD will also enter into 2 tripartite Project Agreements with, respectively,
PWA and MoF and, the FAO and MoA. For the avoidance of doubt, the tripartite project agreements will also be
considered Subisidiary Agreements.
Accordingly, there will be a total of three Subsidiary Agreements for the implementation of the project.
AFD, as the AE, will be responsible for the project implementation and activities carried out by EEs.
Project implementation responsibility
The Ministry of Finance and Planning will sign an on-granting agreement with the PWA (the PWA is an
independent public organization; therefore, an on-granting agreement is required). The PWA will be the lead
Executing Entity for the project and will be in charge of the overall coordination of the activities and of the “hard”
components of the project (i.e. delivery of the infrastructure).
The execution of the tripartite project agreement, between AFD, MoFP (representing Palestine) and PWA will be
a condition precedent to the first disbursement under the AFD-Palestine Subsidiary Agreement.
The Ministry of Agriculture according to the grant agreement will be responsible, as Executing Entity, for part of
the project implementation, for activities related to on-farm development.
MoFP will not channel funds. It is the legal representative of Palestine for the signing of financial agreements with
AFD. It also has legal power to on-grant resources to any Public Entity designated by Palestine and AFD to execute
the project, in this case PWA. Disbursements will be made directly to PWA (EE 1) or MoA-FAO (EE 2) or to
Contractors.
Main stakeholders
The PWA – Executing Entity: will be directly responsible of the project implementation apart from on-farm
activities.
PWA is a government body of separate legal personality as Palestine/Palestinian Authority. AFD’s sovereign
relationship as a bilateral donor and through a Grant Agreement is with Palestine (represented by its Ministry of
Finance), which subsequently on-grants the funds to PWA as the Executing Entity. The On-Granting Agreement
(or the tripartite project agreement, in case of this project), will strictly transfers all applicable terms and
obligations of the Funded Activity Agreement between AFD and GCF to the EE and defines the terms whereby the
EE can enter in direct relationship with AFD: the PWA is thus capacitated to request funds directly from AFD and
is obligated to manage them under the terms of the Grant Agreement, i.e. AFD’s Guidelines.
The Ministry of Agriculture will implement the project downstream the connection points.
The FAO will be the MoA’s implementing partner for on-farm activities and support the civil society organizations.
The FAO will sign an Implementing Partnership Agreement with the MoA, detailing the technical and financial
characteristics of this cooperation. The organic and prior relationship existing between the MoA and the FAO, as
well as specific knowledge and know-how of this organization in the context of Palestine and Gaza justifies that
this United-Nations Organization be directly involved in the project, alongside the MoA.
MoA and FAO have a secular relationship because Palestine’s MoA is a FAO Member. The project will activate this
pre-existing and non-commercial institutional relationship through a specific FAO-Country MoA Agreement
directed to the implementation of specified activities and funded through the project. The terms of this FAO-MoA
agreement, which will be the tripartite project agreement between AFD, MoA (representing Palestine) and
FAOwill specify the scope of work to be implemented by the FAO and will provide for “direct payment” modalities,
which will allow AFD to transfer funds directly to FAO, based on MoA’s approval of the workplan and
implementation progress.
In this context, MoA will not manage funds itself (direct payments will be made to the FAO), but will remain in the
driver’s seat in terms of co-piloting the activities technically. This institutional arrangement is necessary in a
context where on-farm activities are essential to the project’s success, but MoA’s capacities to implement them are
limited. In general, though capacity is low, we prefer inclusion of State institutions when possible and promote,
through the type of partnership described above, their capacity building by Development Partners.
The Water user association (WUA) will be organized with the support of the FAO and will sign a MOU with PWA
(see input 3.2.1).
Environment Quality Authority (EQA). In its capacity as NDA and a partner in the water quality monitoring
scheme.
Project implementation
Activities under the PWA responsibility
A project management unit (PMU) within the PWA will be responsible for all tendering activities for capital
investments, the recruitment of an international technical assistance and for the financial management of the
project. All tendering activities will follow AFD procurement guidelines and will be subject to prior review by AFD
at each stage of the procurement process: tender documents review; technical evaluation; financial evaluation;
contracting. This consists in a three level verification process by: AFD-Jerusalem Office, AFD Headquarters
technical department and disbursement officer. All contracts for goods and works will be managed under “direct
payment” procedure (standard procedure described in AFD’s financing agreement), whereby AFD will be the
paying agency on the basis of invoices from the contractors reviewed and transmitted by the PWA/PMU to AFD
Jerusalem Office.
The PMU will include a Gender Action Plan Coordinator, with previous experience in coordinating Gender Studies,
based in PWA-Gaza.
Further, the PWA will be responsible for the Groudwater Quality Monitoring Plan, in liaison with the MoA and
FAO, and for the setting-up of a communications protocol to inform WUAs and users about possible water quality
hazards. This protocol will be attached to risk mitigation procedures that will include progressive measures,
ranging from restriction of use for agriculture to the temporary shutdown of the transfer of water to users and, if
necessary, its redirection to the infiltration basins for further filtration and purification until levels of
contaminants reach acceptable levels. In case infiltration basins are full or “unavailable” (which is unlikely thanks
to the rehabilitation of 7 additionaly basins through this project), an emergency discharge protocol will be
triggered by transfer of treated water to Wadi Beit Hanoun.
The PWA/PMU will be assisted in its project management tasks by an international Technical Assistance.
Activities located outside the mandate of the PWA.
For activities related to on-farm activities, the Ministry of Agriculture of the Palestinian Authority will take over
the implementation. The Ministry will seek the assistance of the FAO as its Implementing Partner for Outputs 2.2,
3.2 and 3.3 (see Annex 10); based on the FAO know-how and previous experience in Gaza, the FAO will engage
Civil Society Organizations (CSOs) according to its sets of rules and regulations to implement parts of the tasks
within 2.2, 3.2 and 3.3.
Land Rights
Project activities are expected to require minimal land acquisition for the construction of wells, pumping stations,
effluent reuse pipelines and storage tanks. The PWA (EE) will adopt a comprehensive avoidance mechanism
through the following procedures:
1- Constructing of wells on State owned lands. As such, the first phase of the project caused no impacts pertaining
to land acquisition;
2- Selection of less valued land (e.g. that are located far from the main roads);
3- All monitoring wells are installed along the roads to avoid affecting the private lands;
4- Small plots of lands that might result in severe impacts on the affected people are avoided;
5- All physical assets are entirely avoided in order to minimize unfavorable impacts.
Nevertheless, there will be isolated cases of expropriation, for which the World Bank’s Operational Procedures
(OP) on Involuntary Land Acquisition and Resettlement (OP 4.12) as well as Palestinian Law (Law No. 2 of year
1953 on “Land Expropriation for Public Projects”) will be triggered. As a result, a comprehensive Relocation Action
Plan (RAP) has been prepared, which details procedures and guidelines for land acquisition.
Governance of the project

A Steering Committee will be established to ensure appropriate coordination between stakeholders of the project
(PWA the Chair, EQA, PENRA, Ministry of Finance and Planning – MoFP, Coastal Municipalities Water
Utility(CMWU), MoA/FAO, WSRC), to take strategic decisions and to guarantee good information sharing; the
Committee will be conveyed twice a year. AFD will be an external observer in this Committee.
This Committee will follow the implementation of the project through the indicators and the logical framework.
The WUA, as soon as it is established, shall also be included as a member of the Committee.
A Technical Committee, limited to Implementing agencies (PWA the Chair, MoA/FAO, WSRC,) shall also be created
for more periodical and operational decision making. It will report to the Steering Committee.
The secretariat of the two Committees will be held by the PMU.
AFD supervision of the project
AFD will provide no-objections:
- Prior to the signing of the on-granting agreement with the PWA and the project agreement with FAO;
- On semi-annual technical and financial execution plans;
- On every steps of a tendering process according to its own procedures.
Bi-annual supervisions will take place, including the mobilization of expertise. A gender expert – AFD staff -is
assigned for the monitoring of the Gender Action Plan.
Monitoring and evaluation
The PWA-PMU will be in charge of centralizing and managing the monitoring system of the project. In particular,
the PMU will be responsible for organizing the Mid-term review, as well as the end-line final evaluation of the
project.
AFD will tender and contract the consultancy services for the ex-post evaluation of the project, after full
completion of the activities (usually one year after project completion).
The institutional set-up of the project is summarized by the following figure:
C.8. Timetable of Project/Programme Implementation
2019 2020 2021 2022 2023 2024
S2 S2
- - Q Q Q Q1 Q1 Q1 Q1 Q1 Q2
Q5 Q6 Q8 Q9 Q10 Q11 Q12 Q14 Q18 Q21 Q22
Q Q 3 4 7 3 5 6 7 9 0
1 2
Output 1.
Production of
additional quantities
of water for
agricultural use
Activity 1.1 An
additional water
resource is created X X X X X X X X X
by Managed
Infiltratio
Aquifer Recharge n bassins
Deliverable/Milest rehabilitat
ed 14 wells
one 1.1.1: delivere
X
Rehabilitation of 7 d
infiltration basins for
X
recharge of the
aquifer
Deliverable/Milest
one 1.1.2: Delivery
of the recovery
scheme
Activity 1.2 Water –
Energy Nexus,
development of
X X X X X X X X
renewable low- Delive Delive
emission energy ry of ry of
1st 2nd
solutions Tranc Tranc
Deliverable/Milest he (4 he 3
one 1.2.1:Delivery of MWp) MWp
X
2 PV schemes to
sustain the overall
needs of the NGEST
scheme
Output 2.
Development of X X X X X X X X X X X X
irrigation, water
efficiency and
climate resilient
agriculture
Activity 2.1 An
improved water
service for irrigation X X X X X X X X X X
is brought to 4 200 Delivery
beneficiaries of 1st
serving 1 500 ha tranche of
the
Deliverable/Milest scheme(5 Delivery
of 2nd
one 2.1.1: Delivery 00 ha)
tranche of
of the first tranche the
of the irrigation scheme(1
000 ha)
scheme, 500 ha X
Deliverable/Milest
one 2.1.2: Delivery
of the second
tranche of the
irrigation scheme, 1
000 ha
Activity 2.2.
Water
Increased climate saving
New
Climate
resilience of croppi
equipme smart
ng
agriculture, X X X X X X nt is in X X X X X X X
system
X X agriculture
adaptation of place at is
is in
on famr performed
cropping systems level
place
to climate change
Deliverable/Milest
one 2.2.1. Inception X
of services by FAO
Deliverable/Milest
one 2.2.2: Extension X X X X X X X X X X X X X X X X X X
services to farmers
Deliverable/Milest
one 2.2.3: Subsidy of
X X X X X X X X X X
on-farm water
saving equipment
Deliverable/Milest
one 2.2.4: Design of X X X X X
on-farm equipment
needs with farmers
and WUAs
Deliverable/Milest
one 2.2.5: Inception
and X X
update/adaptation
of the GAP change
Deliverable/Milest
one 2.2.5: Integration
X X X
of women in the
WUA
Deliverable/Milest
one 2.2.5: Setting-up
X X X
of women farmer
field schools
Output 3.
Management of the
water cycle and
capacity building of
stakeholders
Activity 3.1.
Strenghtening of
PWA capacities in
its role of Technical Exit
Assistan strategy is
coordination and X X X X
ce is in
X X X X X X X X X X X X X X X
implement
quality control of place ed
the process of
reuse of treated
waste water
Deliverable/Milest
one 3.1.1: Technical X X
assistance
Deliverable/Milest
one 3.1.2: Setting-up
of a water quality X
monitoring and
control system
Activity 3.2. Exit WUAs are
Strategy and functionna
WUAs are
X X X X X X X X X X X X X X X X l and
Transfer of O&M to set up
autonomo
Water Users us
Deliverable/Milest
one 3.2.1.
Identification and
establishment of the
X X X X X X X X X X X X X X
co-management
scheme – Structuring
and capacity
building of a WUA
Deliverable/Milest
one 3.2.2.
Integration of
X X X X X X X X X X X
women in the
governance bodies
of the WUA
Activity 3.3 Communiti
es are
Communities are Communi organized
empowered and ty needs for
X X X X X X X X X X X X X X X
supported, in the are decision
assessed making
context of the towards
conflict in Gaza resilience
Deliverable/Milest
one 3.3.1: Diagnostic
and analysis of the
conditions of X X
restoration of
unused land within
the irrigable area
Deliverable/Milest
one 3.3.2:
Psychosocial support
X X X X X X
and strengthening of
community and
household bounds
Activity 3.4
Capitalization of the Post mid-
Final
outputs/outcomes term
capitalizati
for replication and capitalizati
on report
on report
upscaling in
Palestine
Deliverable/Milest
X X X X X X X X X X X X X
one 3.4.1:
Intellectual services
for capitalization
2019 2020 2021 2022 2023 2024
S2 S2
- - Q Q Q Q1 Q1 Q1 Q1 Q1 Q2
Q5 Q6 Q8 Q9 Q10 Q11 Q12 Q14 Q18 Q21 Q22
Q Q 3 4 7 3 5 6 7 9 0
Reporting 1 2
Inception Report,
includung full and X
detailed Timetable
of the Project
APR X X X X
Mi-term Review
X
and evaluation
Final evaluation X
APPRAISAL SUMMARY
GREEN CLIMATE FUND FUNDING PROPOSAL | PAGE 37 OF 80 E
D.1.Value Added for GCF Involvement
The GCF involvement is sought at the end line of a relatively long and costly investment starting with the creation of
the NGEST WWTP and that will end with the proposed project. Conventional development banks have pushed to the
limit the amount of funds dedicated to this endeavor as the Word Bank has delivered its final contribution in 2016 for
the first stage of the infiltration and recovery scheme and as AFD will, in 2018, dedicate more than the amount of its
country contribution to this project, usually capped at 10 MEUR/year.
This last push from conventional donors to this endeavor cuts short of converting a classical “water and sanitation”
project into a low-carbon adaptation to climate change scheme. The GCF funding is sought to cover exactly the
incremental costs related to closing the water cycle in order to make use of every drop of the 13 Mm3 produced yearly
by the WWTP to compensate the 30% compounding effect of climate change on agricultural production, access to
domestic water and livelihoods in Gaza.
In this rationale, the incremental costs necessary for the completion of each step of the water cycle (infiltration, low-
carbon recovery, storage and distribution, efficient irrigation infrastructure) are considered eligible to the GCF
financing because only the full completion of the overall scheme will deliver the paradigm shift that is hoped for
through the project. Nevertheless, GCF funding has been concentrated on output 1, dedicated to generating
(infiltration + recovery) an additional water resource in a context of growing aridity due to climate change, impacting
agriculture and availability of resources for domestic use. Costs of output 2, 3 and 4, related to the development of a
water-efficient irrigation scheme and to capacity building have been shared with AFD resources, to the full and
maximum amount of its possible financial contribution to the project (AFD is limited on its annual contributions to
Palestine at 10 MEUR/year; an exceptional effort has been made to bring this contribution to 13 MEUR in order to
better match GCF funds and close the financing of this project), singling out and justifying the very incremental nature
of the GCF contribution to the project.
This low-carbon (i.e. with mitigation co-benefits) adaptation to climate change investment is the end-line of first
phases of investment described above and therefore needs to be looked at through the lens of a holistic approach to
solving a water scarcity problem. As such, the AE considers that the climate value for money for GCF funds should be
evaluated in light of the financial effort made by conventional donors from the start of the overall investment, i.e. the
establishment of the NGEST WWTP, which produces the water used for adaptation to climate change – even though
this investment has been delivered and commissioned prior to the present project and is now completed.
Therefore, the value for money of GCF funds sought to co-finance this project is calculated as follows:
Water deficit related GCF cofinancing ratio of water deficit

Cost (MEUR) GCF
investments related investments
WWTP 43 0 0,0%
Recovery 13,6 7,2 52,9%
Irrigation 18,7 9,4 50,3%
Capacity building water sector 1,85 0,75 40,5%
Total 77,15 17,35 22,5%
CLIMATE VALUE FOR MONEY

131,7%
[Climate vulnerability / Climate financing] Ratio
It is apparent that the 22,5 % of co-financing of GCF to the global NGEST program is of the same magnitude as
the “climate change contribution” of 30% to the growing vulnerability of the Gazan population due to
increasing water scarcity(see C.2 and Annex 3), bringing GCF’s climate value for money at roughly 130%.
APPRAISAL SUMMARY
D.2. Exit Strategy
The exit strategy related to the sustainable operation and maintenance of the hydraulic infrastructure is built
in the project, in Activity 3.2. It relies on the ability of the WUA to buy water from the public supplier, apply
a tariff for water services on its users and use the remaining financial resources to operate and maintain de
scheme.
E.1. Impact Potential
Potential of the project/programme to contribute to the achievement of the Fund’s objectives and result areas
E.1.1. Mitigation / adaptation impact potential
This project is expected to have an important impact on both the adaptation and the mitigation sides. Below is
a description of the impact potential, with quantitative indicators where possible and relevant.
Paradigm-shift Objective Expected result of the project
Increased climate-resilient Three adaptation impacts are expected from the project:
sustainable development - Increased resilience of Gazan agriculture through the
provision of improved water services for irrigation;
- Recharge of the aquifer and improved access to
domestic water of 200 000 people exposed to water
scarcity;
- Depollution and prevention of the aquifer.
Fund-level Impacts
Tonnes of carbon dioxide equivalent (t
CO2eq) reduced as a result of Fund-
funded projects/ programmes
166 858
Reduced emissions through increased
low-emission energy access and power
generation
Total Number of direct and indirect 4 206 beneficiaries (farm owners, permanent and seasonal
beneficiaries labor) benefiting from improved access to irrigation water,
including 264 female farmers
23 553 people (including the 4 206 farmers) benefiting from
enhanced livelihoods, including 11 776 women, are direct
beneficiaries
200 000 people with increased access to domestic water, 50%
of women, are indirect beneficiaries.
Total = 223 553 people
Number of beneficiaries relative to total

population 20% of the population of Northern Gaza
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Increased resilience and enhanced
livelihoods of the most vulnerable
people, communities, and regions
Number of males and females benefiting 23 553 people benefiting from enhanced livelihoods and
from the adoption of diversified, climate- strengthening adaptive capacity, including 11 776 women
resilient livelihood options (including
fisheries, agriculture, tourism, etc.)
Increased resilience of health and well-
being, and food and water security
Number of food-secure households (in
areas/periods at risk of climate change 4 206
impacts)
Number of males and females with 200 000 ; 50% women

year-round access to reliable and safe
water supply despite climate shocks
and stresses
1 500 ha
Area (ha) of agricultural land made
more resilient to climate change
through agricultural practices (e.g.
planting times, new and resilient native
varieties, efficient irrigation systems
adopted)
Project/Programme Outcomes
Number of technologies and innovative Managed Aquifer Recharge (Infiltration of treated waste
solutions transferred or licensed to water and recovery from the aquifer) rely on technologies
promote climate resilience as a result of developed and transferred from other countries such as
Fund support. the USA, Israel or Jordan.
Climate Resilient Agriculture, Precision Agriculture, Drip
Irrigation will be transferred to farmers through extension
services.
Strengthened institutional and Improved institutional and regulatory systems for the
regulatory systems for climate- development of closed water cycles using treated waste water
responsive planning and development for agriculture. Support to and capacity building of PWA, WUA
and WRSC will be crucial in the implementation of the project
Institutional and regulatory systems that and its scaling-up.
improve incentives for climate resilience
and their effective implementation.
APPRAISAL SUMMARY
E.1.2. Key impact potential indicator
Provide specific numerical values for the indicators below.

5 561,95
Expected tonnes of carbon dioxide equivalent (t Annual
CO2 eq) to be reduced or avoided (Mitigation
166 858,5
only) Lifetime
GCF core • Expected total number of direct and 223 553 people, including 111 776
indicators indirect beneficiaries, disaggregated by women
gender (reduced vulnerability or Total
increased resilience);
• Number of beneficiaries relative to total
population, disaggregated by gender Percentage 20% of Northern Gaza population
(adaptation only) (%)
Examples include:
• Expected increase in the number of households with access to low-emission energy
Other • Expected increase in the number of small, medium and large low-emission power suppliers, and
relevant installed effective capacity
indicators • Expected increase in generation and use of climate information in decision-making
• Expected strengthening of adaptive capacity and reduced exposure to climate risks
• Others
4 206 beneficiaries (farm owners, permanent and seasonal labor) will benefit from improved access to water,
increasing their resilience to Climate Change over the lifespan of the hydraulic infrastructures. Each farmer
represents a household containing 5,6 people on average, according to the Palestinian Central Bureau of
Statistics which leads to 23 553 people with enhanced livelihoods.
The 13 Mm3 infiltrated and recovered for agriculture will reduce their exposure to climate risks by alleviating
the pressure on the aquifer from agricultural activity. In a context of extreme water scarcity, to cover the
domestic needs of the population, it is expected that this additional resource will “free” water otherwise used by
agriculture (in the baseline scenario) that will immediately be used to cover the domestic needs of the growing
population. Applying the current level of consumption of domestic water (96m3/capita/year), which is
extremely low, the project will allow covering the domestic needs of 200 000 people over the lifetime of the
infrastructure.
The total impact of the project is therefore of 223 553 people.
Depollution of the aquifer due to infiltration of clean water and dilution of the polluted water plume
underground, which will prevent the contamination of municipal wells downstream from the infiltration basins,
is an important environmental and public health co-benefit. It translates into reducing climate risks exposure of
200 000 people that will be affected positively by the project, which will improve their access to usable domestic
water.
Describe how the project/programme’s indicator values compare to the appropriate benchmarks (i.e. the indicator
values for a similar project/programme in a comparable context).
The scale of the project in Gaza has no equivalent in Palestine: reuse of TWW schemes exist in Jenin and Nablus,
but remain small scale (less than 100 ha) and results are not available yet. Comparing the situations in Israel or
Jordan would have little relevance due to the discrepancy in situations: for one thing, it would show that
APPRAISAL SUMMARY
expected number of beneficiaries, benefits and co-benefits are much higher in Gaza due to the very degraded
baseline situation and scenario.
Information and references on other REUSE schemes in Palestine can be found in Annex 14.
E.2. Paradigm Shift Potential

Degree to which the proposed activity can catalyze impact beyond a one-off project/programme investment
E.2.1. Potential for scaling up and replication (Provide a numerical multiple and supporting rationale)
Water and sanitation, drinking water and associated sewage networks and waste water treatment plants
(WWTP) projects, have multiplied over the years in Palestine, mainly through public and donor funding (KfW,
WB, AFD being the main partners of the Palestinian government in this sector), and in the region. In Gaza, the
Central WWTP will be operational in 2019 and it is expected that the capacity of the NGEST WWTP be doubled
by 2025.
In the context of Palestine, including Gaza, it is a humanitarian and developmental imperative that every drop of
water be recycled in order to compensate the effects of climate change on water scarcity and increase the
resilience and adaptation capacity of the population.
The NGEST is the only “real scale” reuse of TWW experience in Palestine and it will serve as a model to multiply
the experience throughout its territory. At design stage, as an adaptive response, all new sanitation and WWTP
projects will include a “REUSE” component for agriculture and associated activities related to on-farm
development in order to guarantee and manage the timely delivery of each step of the water cycle from the TP
to the irrigation scheme. In addition, climate change co-benefits have been embedded in the very design of the
present project by providing low-carbon solutions (bio-digesters + PV schemes).Tested for the first time at this
scale, they will also be systematically included in future projects.
The results of the mid-term evaluation of this project will be strategic and timely inputs to ongoing or future
REUSE schemes all over Palestine: at the El Bireh WWTP (neighboring Ramallah and projecting to transfer water
for the Palestinian agriculture in the Jordan Valley); at the Jericho WWTP to irrigate palm tree groves for date
production; at the Nablus WWTP where the German cooperation is supporting a pilot of direct reuse of TWW
for agriculture (40 ha). It is also expected from this project to be potentially duplicated to other projects in the
region.
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E.2.2. Potential for knowledge and learning
The knowledge potential of the project, as the first real scale REUSE by aquifer recharge operation in Palestine,
is both huge and highly strategic in order to foster and strengthen the adaptive capacity to climate change of
Palestine and its population.
In the current situation, Palestine has no other short term option on the table to start reversing its water deficit
than the reuse of TWW.
Nevertheless, up-scaling this effort calls for the mastering of the several dimensions of reuse of TWW:
- Technological: what is the best solution in terms of cost and quality to deliver the best service to end-
users?
- Economic, Social and environmental: how do we guarantee quality and stability of the water delivered
(do no harm) and the inclusion of the more vulnerable as beneficiaries of the project;
- Sustainability: how do we create and support functional and legitimate users’ institutions that take over
all or part of the O&M of the infrastructure delivered by the public sector?
These questions are being answered through the ongoing dynamic at NGEST and will need to be documented
and analyzed through the present project, its external evaluations and by the mobilization of funds earmarked
for intellectual services for capitalization (Activity 3.4). The COSTEA (https://www.comite-costea.fr/), a
platform created by AFD and bringing together professionals and researchers in water and irrigation, could be
mobilized and could cofinance this work in the amount of 150 000 EUR in addition to the financing of the project.
This knowledge will then be used for the next generation of REUSE operations in the region.
E.2.3. Contribution to the creation of an enabling environment
As mentioned above, NGEST is but the first step of a relatively long path to full development of REUSE capacity
in Palestine. It is clear that the factors of success of the NGEST project will pave the way to the multiplication of
similar projects in other parts of the territories.
In particular, the following aspects of the project will be particularly enabling of this development in the future:
- The setting-up and strengthening of a water quality monitoring and control mechanism, which is
paramount to the success of any REUSE project, will allow to fix the standards of all future projects;
- The involvement of the Water Sector Regulatory Council, as an external oversight body, will be essential
to limit the risks of such projects and make sure that quality standards are met on a day to day basis;
- The stronger inclusion of on-farm activities, a key aspect of the sustainability of reuse of TWW in
agriculture, and the involvement of MoA and FAO will set a precedent to a more holistic approach to the
management of the water cycle;
- The creation of the WUA and the importance of women therein, which will lead to a more equitable and
gender-balance access and distribution of water.
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E.2.4. Contribution to regulatory framework and policies
The reuse of treated waste water is a complex multi-stakeholder endeavor and quality control at each level of
the water cycle is paramount to the success of any such project. The Water Sector Regulatory Council serves
exactly that purpose and, in the context of Palestine, its strengthening and capacity building is dependent on
direct funding from donors.
The main responsibilities of the WSRC as per the water law can be detailed as follows:
- Approval of water tariffs, costs of supply networks and other services required for the delivery of water
and wastewater services, as well as review and monitoring of these tariffs to ensure compliance with the
policy adopted by the Palestinian Water Authority.
- The issuance of licenses to Regional Water Utilities and any operator that establishes or manages the
operation of a facility for the supply, desalination, or treatment of water or the collection and treatment
of wastewater, and the levying of license fees.
- The monitoring and inspection of compliance with the terms, requirements and indicators stipulated in
licenses and permits.
- The development of performance incentives programs for water service providers.
- Monitoring operation processes related to the production, transport, and distribution of water and
operational processes of wastewater management.
- Monitoring water supply agreements.
- Setting quality assurance standards for the provision of technical and administrative services by Service
Providers to consumers.
- Monitoring the compliance of the National Water Company and Service Providers with the adopted
standards for the provision of water and sanitation services.
- The establishment of a database for technical, financial and statistical information and the publication of
this information periodically.
- Addressing complaints of consumers against Service Providers.
The project will integrate the WSRC into the steering and the technical committees in order to allow it to exercise
its oversight mandate over the water sector investments of the project and stakeholder mobilization in the
context of the creation of a water users association.
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E.3. Sustainable Development Potential
Wider benefits and priorities
E.3.1. Environmental, social and economic co-benefits, including gender-sensitive development impact
By embracing several developmental dimensions in the same project, the proposal has a strong potential when
it comes to sustainable development.
It is important to recall, before going into the details of the different dimensions of sustainable development, to
highlight the following SDGs, which are targeted by this project, namely SDG 1 (no poverty), SDG 2 (zero hunger),
SDG 3 (good health and well being), SDG5 (gender equlity), SDG 6 (clean water and sanitation), SDG 7 (affordable
and clean energy), SDG 8 (decent work and economic growth), SDG 9 (industry, innovation and Infrastructure),
SDG 10 (reduced inequalities), SDG 13 (climate action).
Environmental:
Since 2009, about 30 million cubic meters of untreated water have been infiltrated in the aquifer at the location
of NGEST; this has created a pollution plume which is moving towards the West and should reach the proposed
location of the recovery wells by 2020 and, further down the Municipal wells by 2022, impacting the drinkability
of the water and the health of the population of Gaza City (See Baseline Study On Water Quality &Public Health
In The Gaza Strip, 2015, Annex 3). The activation of the water cycle downstream from the NGEST WWTP by
infiltration and recovery of treated waste water will have two beneficial effects to reduce the pollution and
prevent the occurrence of a health crisis in Gaza City: (i) infiltration of treated waste water will dilute the
pollution plume (as shown in the extractions of the water model below) (ii) the depression in the aquifer caused
by pumping (see image below) will reverse the progression of the pollution plume towards the surrounding
wells.
Further infiltration of water in the aquifer after agricultural use will contribute to depolluting the water
underground and sustaining its use by the population.
Reduction in Greenhouse Gas (GHG) through the installation of a 8 ha PV scheme is also an environmental co-
benefit of the project.
Socioeconomic co-benefits of the project are mainly twofold:
(i) the establishment of a public irrigation scheme and the democratization of daily access to water for all farmers
will create more winners than losers with regard to the baseline. Owners of private wells (15 people) will see
their business decrease (while benefiting from an improved water service; they will also be targeted by the ESMP
to evaluate and compensate their eventual losses), while the rest of the farmers and their families will see their
access to irrigation water highly improved: from not at all (20% of the farmers) or once every 10 days (80% of
the farmers), all farmers subscribing to the water users association will benefit from daily under pressure water
service.
(ii) in a context where every drop of available water is used, the reliance of agriculture on an alternate and non-
conventional source of water will free the equivalent quantities for other uses, namely in the context of a fast
growing population, which in the baseline scenario would of taken place any further depleting the aquifer and
generating health hazards due to bad quality of water. It is estimated that, thanks to the project, 200 000 people
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will benefit from improved access to domestic water due to the infiltration of 13 million cubic meters yearly by
the NGEST facilities (applying a low 65 m3/y/capita of domestic water consumption, which is the current
situation of domestic water availability in Gaza).
Gender empowerment:
Key Gender issues experienced by women in the project area that were revealed by the gender analysis are as
follows:
1) adverse social norms;
2) discriminatory laws and lack of legal protection;
3) the failure to recognize, reduce and redistribute unpaid household work and care; and
4) a lack of access to financial and property assets.
The project’s Gender Action Plan (GAP) forms the basis for operationalizing the results and recommendations
of the gender analysis prepared during the preparation phase. It ensures effective gender mainstreaming and
integration of a consistent gender-perspective in the NGEST project in order to maximize climate and
development co-benefits. The aim is to promote opportunities, drivers of change and positive gender dynamics
as well as to manage and mitigate potential adverse risks over the duration of the project. The GAP ensures that
the project is compliant with GCF’s Gender Policy and Action Plan (GCF/B.09/23) 5. The full GAP is presented in
Annex 12. The PWA and the GAP Coordinator within the PMU will be supported in its implementation by the
provision of specialized Gender expertise through the Technical Assistance services that are funded under the
project – the expertise will include provision of training of PWA staff and mainstreaming of gender in relevant
PWA technical departments.
The GAP is closely aligned to the outputs of the log frame (see H.1) and planned activities of the recovery scheme
from the NGEST project. It complements the Environmental and Social Management Plan (ESMP) that already
contains gender-related aspects 6 . In addition to the specific activities and measures of the GAP, the NGEST
project will apply more general, systematic measures in accordance with the Palestinian Water sector reform
Plan 7 as well as the National Water and Wastewater Strategy for Palestine 8.
The activities of the project and, in particular, the establishment a WUA based on the recently published bylaws
promoting inclusiveness of the most vulnerable, is an opportunity to open pathways of change for women. The
GAP interventions 9 seek to tackle adverse social norms, reform discriminatory practices, and help women build
financial and property assets. Promoting female membership and leadership in the WUA will help to strengthen
visibility and local women’s collective voice and representation, which should contribute to other ripple effects
throughout Gaza of increased female empowerment.
The Ministry of Agriculture and FAO will involve local civil society and women non-governmental organizations.
In terms of methodology, the GAP will be implemented using inputs from the FAO (see Annex 10) and
5https://www.greenclimate.fund/documents/20182/818273/1.8_-
_Gender_Policy_and_Action_Plan.pdf/f47842bd-b044-4500-b7ef-099bcf9a6bbe?version=1.1
6Annex 9: Socio Economic Baseline Assessment Willingness Survey Results Cost Analysis and Tariff Surveys Results
(2013).
7Palestinian Water Sector Reform Plan (2016-2018). Technical, Planning And Advisory Team in the Water And
Sanitation Sector (Tpat) Phase II. http://www.wafainfo.ps/pdf/water_project_2016_.2018.pdf

8 National Water and Wastewater Strategy for Palestine: Toward Building a Palestinian State from Water
Perspective. PALESTINIAN WATER AUTHORITY. July 2013. http://procurement-

notices.undp.org/view_file.cfm?doc_id=27192
9 See the Gender Action Plan, Section 4: Drivers of Change.
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particularly from the International Union for Conservation of Nature- IUCN’s training Manual on Gender and
Climate Change 10.
Further, the project will mainstream gender in relation with all expected Outputs of the project – as per the GAP-
bust mostly in relation with Outputs 2 and 3, namely through the following inputs:
Input 2.2.3. Gender, land tenure and irrigation – a Gender-responsive approach to agricultural resilience to
climate change
Input 3.2.2. Integration of women in the governance bodies of the WUA
Input 3.3.2: Psychosocial support and strengthening of community and household bounds
PWA and the TA (with dedicated staff) will have the responsibility of implementing the GAP, which will be
monitored by the Steering Committee.
E.4. Needs of the Recipient

Vulnerability and financing needs of the beneficiary country and population
E.4.1. Vulnerability of country and beneficiary groups (Adaptation only)
Conflict and climate vulnerability in Gaza has been extensively studied by Michael MASON from the London School
of Economics, who develops a very useful analysis of the two coexisting and combining factors:
“In societies marred by conflict, the propensity of populations to be harmed by climate hazards is likely to be increased
by their exposure to violence and other coercive practices. Stakeholder assessments of climate vulnerability, as reported
here for the Gaza Strip, can capture the qualitative experience of harm caused by conflict-related practices as these
relate to, and interact with, forecasted climatic risks. The key pathways of climate vulnerability identified by
stakeholders in Gaza relate above all to expected impacts on food security and water security. Exploration of these
vulnerability pathways reveals conflict-structured non-climatic risks overwhelming forecasted climate risks. The
prevalence in Gaza of short-term ‘enforced coping’ prevents the development of long-term adaptive capacity. Climate
vulnerability assessments in (post)conflict environments should acknowledge the methodological and political-policy
challenges caused by chronic, non-climatic sources of harm.” (Michael Mason, Mark Zeitoun & Rebhy El Sheikh (2011):
Conflict and social vulnerability to climate change: Lessons from Gaza, Climate and Development, 3:4, 285-297)
The following figure, adapted from the work of M. MASON et al. in Gaza is also included in Palestine-UNDP Adaptation
du Climate Change Action Plan (UNDP 2010a, p.36):
10 https://portals.iucn.org/union/sites/union/files/doc/training_manual_on_gender_and_climate_change.pdf
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This analysis, which highlights the food insecurity – water insecurity nexus as the main driver of vulnerability in
Gaza, is the backbone of the rationality of the present project. The reuse of treated waste water by recharge of the
aquifer and recovery for agriculture, as described at large in the above sections, co-impacts, by nature, both water
availability and agricultural resilience.
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E.4.2. Financial, economic, social and institutional needs
• Economic and social development level of the country and the affected population
Despite its potential, the Palestinian economy is currently heavily distorted and failing to generate the jobs and
incomes needed to improve living standards. Restrictions on trade and access to resources, along with a decade long
blockade of Gaza have hollowed out the productive base. The share of manufacturing in the economy has halved in
the last twenty-five years, while agriculture is only one third its previous size. The economy is import dependent
with imports over three times the size of exports and a trade deficit close to 40 percent of GDP (one of the highest in
the world), while trade is concentrated with Israel. Investment rates have been low with the bulk channeled into
relatively unproductive activities that generate insufficient employment. As a result, growth, which has mainly been
driven by consumption, has run out of steam. With a sharp decline because of the 2014 Gaza war and a drop in aid
levels, growth in real Gross Domestic Product (GDP) slowed to 2 percent on average between 2013 and 2016, and
dropped to a mere 0.7 percent in early 2017. Unemployment remains close to 30 percent on average, with youth
unemployment twice as high in Gaza where the humanitarian situation has significantly worsened in recent months
following the electricity crisis which has serious implications on the health, water and sanitation sectors as well as
business activity (source Economic Monitoring Report to the Ad Hoc Liaison Committee, World Bank, Sep 2017).
Historically, the agriculture sector has been the largest economic sector in the Gaza Strip and still plays an important
role in the economy. This role, however, has declined over time in an unsecure context. The contribution of the
agriculture sector to GDP declined from 37% at the end of the 1970s, to 22% at the end of 1980s. The contribution
to GDP continued declining after the Oslo agreement, reaching 10% in the 1990s. Intensification of restrictions of
movement of people and goods affected the marketing and export of agricultural products. This caused further
decline in the contribution of the agriculture sector to Gaza's GDP to 7% in 2000, lowering total exports to around
23%, and constituting 14% of the employment. In 2005, Israel withdrew occupation forces and removed settlements
from Gaza. In 2006, after the Palestinian elections, a decision was made to introduce a policy of separation between
the West Bank (WB) and Gaza Strip. Between 2005 and 2015, after the establishment of the blockade, the
contribution of the agriculture sector to Gaza' GDP fluctuated between 5.6% and 8.5%, reaching 5.7% in 2015. The
latest Palestinian Central Bureau of Statistics (PCBS) reports indicate that in the third quarter of 2016, only 4.5% of
total workers in the Gaza Strip work in agriculture and fishing, and the agriculture sector recorded the lowest
average daily wage at 22 NIS (6 USD).
With regard to the beneficiary population, the following exert of the Poverty Profile of Palestine (full document in
Annex 15) illustrates the situation of the beneficiary population:
“Two poverty lines have been developed according to actual spending patterns of Palestinian households. The first,
termed “deep poverty line,” which was calculated to reflect a budget for food, clothing and housing. The second line adds
other necessities including health care, education, transportation, personal care, and housekeeping supplies. The two
lines have been adjusted to reflect the different consumption needs of households based on their composition (household
size and the number of children). In 2017, the poverty line and deep poverty line for a reference household of five
individuals (2 adults and 3 children) were, respectively, NIS 2,470 (~692 USD) and NIS 1,974 (~553 USD). 53 percent of
individuals in Gaza Strip found to be poor in 2017, the poverty rate for Gaza Strip was more than four times higher than
of the West Bank rate of 13.9 percent. Moreover, is the fact that 33.7 percent of individuals living in Gaza Strip were
suffering from deep poverty compared with 5.8 percent of the West Bank; (which means that they are unable to meet
the minimum required for food, clothing and housing).”
Absence of alternative sources of financing (e.g. fiscal or balance of payment gap that prevents from addressing the needs
of the country; and lack of depth and history in the local capital market)
Palestine has no credit record or capacity and is entirely dependent on concessional foreign aid to implement public
investments as described in this project. Further, the magnitude of these investments combined with the high level
of vulnerability of the population in Gaza does not allow private sector involvement.
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• Need for strengthening institutions and implementation capacity.
The PWA is the lead agency for the water sector in Palestine; AFD has a long history of cooperation with this
institution which shows a high level of capacity. Nevertheless, given the complexity of the project, combining
different types of infrastructure, including irrigation for which PWA has limited experience, and the need for a robust
quality control mechanism, PWA has requested for support in terms of the overall coordination and management of
the project (implementation capacity), as well as institutional and technical strengthening for the management of
the water quality monitoring system.
On the other hand, the ministry of agriculture, in charge of the on-farm development activities has limited resources
and capacities to invest in their implementation. Therefore, the Food and Agriculture Organization of the UN will act
as its Implementing Partner. Funds from co-financiers of this project will be channeled directly to the FAO in
exchange of the implementation of the agricultural activities of the project and capacity building of the ministry of
agriculture and the water users association.
E.5.1. Existence of a national climate strategy and coherence with existing plans and policies, including NAMAs, NAPAs
and NAPs
On the 17th of March 2016, Palestine officially became the 197th party to the UNFCCC. It also ratified the Paris
Agreement on the 22nd of April, 2016 and was one of the first countries to do so. Few months after joining the UNFCCC
Palestine was able to submit its Initial National Communication Report (INCR) and the National Adaptation Plan
(NAP) and became the sixth country in the world that submitted their NAP to the UNFCCC, which reflects the very
high priority given to adaptation to climate change by the Palestinian Authority.
The INCR, which was developed in accordance with the recommended and applicable guidelines, highlights the key
outcomes on Greenhouse Gas (GHG) emission inventories, analysis of mitigation and adaptation potentials, making
it a vital source of information on GHGs emissions, the measures to be taken to mitigate GHGs and to adapt to the
adverse effect of climate change.
The Nationally Determined Contribution (NDC) was build up upon the INCR and NAP and in line with the National
Development Plan. Recently, Palestine formulated the National Policy Agenda (2017-2022), the highest policy paper
which clearly indicates that climate change and efficient response to its impact as a priority. Palestine has developed
18 sectoral strategies and 3 cross sectoral strategies to achieve sustainable economic development in a manner that
takes climate change into consideration. In this document could be found Water Sector Strategy, Agriculture Sector
Strategy and Environment Cross Sectors Strategy which include goals linked to climate change mitigation and/or
adaptation.
Palestine together with AE have prepared this project based on key adaptation actions prioritized in the NAP:
"Enhance the use of additional and alternative water resources for nondomestic purposes". The activities of
this project aims to reduce the vulnerability, enhance resilience to climate change and increase adaptive capacity in
12 sectors including: water, wastewater, health and others. It clearly improves water security by creating new and
additional resources to the country which is greatly suffering from lack of water resources and allows enhanced
aquifer management to respond to climate change challenges.
The gender responsive technology road map formulation, which will identify relevant mitigation and adaptation
technologies to achieve the Palestine's climate change action plans as defined it its INCR, NAP and NDC, is currently
ongoing. Although the development of the technology road map is still at an early stage, stakeholders have already
identified a number of priority technologies which are in line and linked with the technologies involved in the project.
This include technologies related to efficient irrigation, water harvesting, climate smart agriculture, water resource
monitoring technologies, and the treatment and reuse of wastewater. The roadmap will further explore financing
APPRAISAL SUMMARY
sources available for each technology and the required measures for their introduction. The technology roadmap
will therefore clearly show linkages between ongoing proposals such as this project, and the technologies prioritized.
A key point to emphasise is that Palestine’s NAP (and associated NDC conditional actions) is being used as a common
foundation by:
• This funding proposal ;
• the current work on the Technology Roadmap;
• the ongoing development of a GCF country programme and
• the continuing development of NDC implementation plans for the Agriculture (and Energy) sector (including
its nexus with other sectors – Food security, Water, Waste and wastewater, Coastal and marine).
This foundation logically ensures that they will be systematically aligned, feed into each other and focus requests for
support on conditional actions that are Palestine’s domestic priorities, as set out in the NAP, and where their
implementation is dependent on provision of international funding, as noted in the NDC.
UNEP and UNDP consultants are engaging all stakeholders in the development of their work to maintain the common
understanding and commitment that evolved during development of the NAP (and subsequent NDC).
Notably, Palestine was one of the first six countries globally to develop a NAP and it remains one of only a dozen
uploaded to UNFCCC NAP Central. The NAP was developed systematically, building upon the UNFCCC’s Technical
Guidance for the NAP process. In doing so, it involved more than 300 stakeholders from across 12 themes (not only
including Agriculture and Gender but also Coastal and marine, Energy, Food security, Health, Industry, Terrestrial
ecosystems, Tourism, Urban and infrastructure, Waste and wastewater, and Water ) over a period of 18 months. In
accordance with the IPCC 5th Assessment Report definitions, vulnerabilities were prioritised for the NAP in relation
to climate sensitivities and adaptive capacities. Adaptation options were then identified that address each of the
highly vulnerable issues and these options were prioritised for the NAP in relation to a range of criteria (impact,
efficacy, timing/urgency, social acceptance, technology, knowledge/skills, costs, and co-benefits for adaptation and
mitigation). The resultant NAP was endorsed by all six relevant ministries.
A recent review of the priority of NDC conditional actions with stakeholders from across the Agriculture sector in
relation to Government support, adaptation benefits, mitigation benefits, capacity available and technology available
was performed. This process has reconfirmed the importance of the NDC actions, in particular the ones that are the
basis of this project.
APPRAISAL SUMMARY
E.5.2. Capacity of accredited entities and executing entities to deliver
Please describe experience and track record of the accredited entity and executing entities with respect to the activities that
they are expected to undertake in the proposed project/programme.
AFD and Climate Change

AFD was one of the first international donors to integrate the fight against climate change into its practices. This
approach, initiated more than a decade ago, is based on the principle that the fight against climate change is
inextricably linked to the trajectory and development policies of countries, in terms of opportunities and threats, as
well as the involvement of economic, institutional and civil society actors. AFD's first climate strategy dates from
2005.
Since then and in line with its national positioning and its involvement in ecological and climate diplomacy, France
has devoted a large part of its official development assistance to climate finance. The AFD Group has thoroughly
adjusted its intervention strategy and committed more than EUR 29 billion between 2005 and 2017 to projects and
programmes designed to provide climate co-benefits.
AFD’s climate strategy has thus become a strong marker of its identity, with three main aspects: (i) systematically
measuring the carbon footprint of the operations financed (carbon balance) and assessing their potential benefits in
terms of adaptation to the effects of climate change, (ii) an ambitious quantitative commitment to financing 50% of
projects with climate co-benefits, and (iii) selectivity of projects in terms of impact on climate, taking into account
the level of development of the countries concerned. This strategy has profoundly transformed AFD's portfolio and
methods, far beyond the operational sphere, and has also shaped its partnership strategy.
This strong position has contributed to the AFD Group’s significant visibility on climate issues at both national and
international levels. It is actively involved in most major initiatives undertaken with its peers and civil society actors.
AFD was particularly involved in issues of accounting and deployment of climate finance, metrics in terms of impact,
risk approaches, economic modelling, and issues of strategic integration of climate dimensions by financial actors.
The new international momentum, transcribed in the SDGs and the Paris Agreement, requires AFD to support
fundamental and rapid changes in the development models of countries and economic actors even more ambitiously.
Moreover, through the setting up of its Climate Plan in July 2017, the French government wishes to speed up the
implementation of the Paris Agreement not only in France but also at the international level. This provides AFD with
a framework that extends its mandate by affirming that AFD will become the first development bank with an explicit
mandate to implement the Paris Agreement across its entire portfolio. AFD must therefore continue the
transformation of its methods and instruments, launched within the framework of its previous climate strategies.
Three strategic challenges have been identified concerning the role and place of AFD in climate action in the years
to come: ensuring that the Group’s activities are consistent with the Paris Agreement, in support of low-carbon and
climate-resilient development and related public policies; maximizing the impact of its actions in this regard, notably
in terms of leverage effects; and strengthening AFD’s role as a platform for France’s international financial
commitment to climate and its positioning as a reference on climate and development among international finance
institutions.
The new AFD Climate and Development Strategy for 2017–2022 thus proposes four major commitments: (ı) ensure
activities are 100% Paris Agreement compatible, (ıı) increase the volume of climate finance, (ııı) contribute to
redirecting finance and investment flows, and (ıv) co-build solutions and bring influence to bear on standards.
In terms of parameters and scope, the first commitment entails a fundamental evolution of the AFD Group’s approach
to climate issues. This involves progressing from an approach mainly based on an assessment of projects’ climate
benefits towards an approach that includes seeking compliance of all interventions with low-carbon and climate-
resilient development pathways.
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In terms of volume of climate finance, as characterized by the methodology tested by the previous Climate Change
Strategy and shared internationally, the 50% objective of commitments to projects with climate co-benefits is being
extended to the entire AFD Group. This will lead to an absolute increase in the volume of such commitments, with a
special funding effort for adaptation and the African continent.
The AFD Group operates in the Palestinian Territories since 1998 and has financed, until 2017, about fifty projects,
representing a total of more than € 346 million.
AFD operates and supports national strategies in various sectors (Water and Sanitation, local development, private
sector, energy, etc.), with a focus on:
- strengthening public institutions and service providers by supporting the development through the
implementation of sectoral policies,
- maintain and improve the living conditions of the Palestinian population,
- support economic actors in the private sector
- Supporting the modernization of SMEs;
- Development of rural territories including transportation and solid waste management, etc;
- Management of natural resources in the context of climate change;
- Promoting renewable energy and energy efficiency.
The water and sanitation sector has been AFD's priority intervention sector, with 13 water and sanitation
investment programs financed in the Palestinian Territories for a total amount of nearly € 106 million (excluding
funds delegated to AFD by other financing partners such as the EU). According to our estimates, these projects have
enabled 800,000 people to gain access to drinking water and/or to benefit from improvement drinking water
services.
The modalities of intervention of AFD in the sector have evolved from projects focusing on production and transfer
of drinking water to broader sectoral interventions:
- Supporting the sector reform: establishment of joint service councils to rationalize the service delivery,
supporting the new water law established in 2014 that led to the creation of the Water Sector Regulatory
Council (WSRC), supporting the establishment of a National Water Company to manage the conventional and
un-conventional water resources. Currently AFD’s new intervention, the Nexus North project, committed in
2017 is part of the new water law by placing the distribution operators in their role as project owners and
by focusing on their empowerment;
- The field of sanitation: construction of large-scale wastewater treatment plants in the northern Gaza Strip
and Hebron, construction of a wastewater treatment plant in Missilya. A new project is under study by AFD
for the construction of a sewage treatment plant in Bethlehem.
- The reuse of treated wastewater for agricultural purposes is always an integral part of investments programs
to maximize the benefit from water resources in a water scarcity environment.
The three above-mentioned themes, targeted by AFD, are at the heart of the Palestinian Authority's sectoral
priorities:
- Effective implementation of the water sector reform initiated in 2014.
- The treatment of the 100% of the wastewater flowing from the Palestinian Territories to Israel today, with
the aim of reducing the net-lending bill (the Israelis treat the effluents arriving on their territories and charge
this treatment to Palestinians) that reached 35MUSD in 2017.
- Achievement of 100% REUSE: reuse of all treated wastewater for agricultural purposes. The agriculture
sector is currently consuming around 80% of available fresh water.
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E.5.3. Engagement with NDAs, civil society organizations and other relevant stakeholders
The ground water recovery and irrigation schemes at the North Gaza WWTP are part of the wastewater management
system for North Gaza and are based on several studies commissioned by the PWA. The Palestinian Environment
Quality Authority, NDA for GCF, in cooperation with PWA have included this project in the National Adaptation Plan
to Climate Change 2016 as an adaptation option for the Gaza Strip to enhance the use of alternative water resources
for non-domestic purposes. The PWA commissioned a feasibility study for the irrigation scheme in 2017 (funded by
AFD) and in parallel executed the first phase of the water recovery scheme through a World Bank funded contract.
Since July 2017, AFD has identified this project as an essential intervention, in light of the water crisis in the Gaza
Strip; the PWA and the EQA were actively involved in every step of the project formulation that can be itemized as
follows:
- PWA participated to all the identification and appraisal meetings that were performed through 2 missions
from AFD headquarters. Consultations took place with several Palestinian stakeholders; such as Ministry of
Agriculture, Ministry of Finance and Planning,
- Assessing the studies that required updates (i.e. irrigation scheme design update based on the feasibility
study findings, the EIA update, gender analysis and action plan)
- 3 consultations were organized during the preparation phase of the project with the North Gaza population
of the area that included, but not limited to, the final beneficiaries of the irrigation schemes (the farmers).
- The PWA have pushed forward in April 2018, after 2 years of consultations, the approval of the WUA bylaws
by the Palestinian Council of Ministers that will provide the legal framework for the public irrigation
networks management.
It is important to highlight PWA insisted on the financial sustainability of the project outputs reducing the public
subsidies for the O&M of the irrigation scheme to the minimum during the transitional period.
Please also specify the multi-stakeholder engagement plan and the consultations that were conducted when this proposal
was developed.
During the preparation of this project, multi-dimensional consultation activities have been conducted to enable the
marginalized, voiceless, youth and women to gain information about the project in order to gain information about
their concerns and worries regarding the project during various implementation phases.
Following are the main consultation activities to date conducted as a basis for the elaboration of the Multi-
stakeholder Engagement Plan presented in full in Annex 11:
• The study team visited the project area in order to define various stakeholders during April 2018
• Meetings were conducted during April 2018 in order to develop an engagement plan that is locally tailored
for the residential communities along with the study team members
• Based on the identification of stakeholders, various questionnaires and guidelines were prepared in order
to engage: i) the residents in the project areas, ii) Governmental municipalities, iii) the Community Based
Organizations (CBOs), iv) health facility, v) Ministry of Endowment and Ministry of Agriculture , vi) the EQA
• As shown in the scheme below, the study team divided various engagement activities of the project to:
a. Screening
b. Scoping phase and data collection phase and,
c. Public consultation phase.
d. Final report disclosure
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E.6. Efficiency and Effectiveness

Economic and, if appropriate, financial soundness of the project/programme
E.6.1. Cost-effectiveness and efficiency
Describe how the financial structure is adequate and reasonable in order to achieve the proposal’s objectives, including
addressing existing bottlenecks and/or barriers; providing the least concessionality; and without crowding out private and
other public investment.
As mentioned earlier on in the proposal, conventional donors have exhausted their capacity to finance the end line
investments allowing the completion of the full water cycle delivering adaptation to climate change impacts, as well
as social, economic and environmental co-benefits. The World Bank has provided its last contribution in 2017 and
AFD has pledged more than its annual 10 MEUR commitment in 2018, in order to maximize its contribution to the
project, alongside the GCF.
The situation in Gaza, the urgency of the intervention and the high social and environmental co-benefits sought by
the project call for the highest level of concessionality. Though there is an economic component to the expected
impacts of the project, the current level of poverty and vulnerability of the beneficiaries (see Poverty profile in Annex
15), as well as the level of risk related to agricultural investments in the area (where climatic and geopolitical risks
are compounded) make it impossible to envisage lending for such large scale investments.
Please describe the efficiency and effectiveness, taking into account the total project financing and the mitigation/
adaptation impact that the project/programme aims to achieve, and explain how this compares to an appropriate
benchmark. For mitigation, please make a reference to E.6.5 (core indicator for the cost per tCO2eq).
As described earlier in the proposal there is a good level of correspondence between the level of financial
contribution by the GCF and the level of climate change effects the beneficiary population will need to adapt to.
In terms of benchmarking, this project will be the first large scale Managed Aquifer Recharge in Palestine and, in
particular, in Gaza, where conditions are very much specific. Comparing the project’s costs with those of similar
APPRAISAL SUMMARY
operations elsewhere, reveals a 15 to 20% increase in Gaza, due to the high dependency on import, the complexity
of border crossing and, overall, the translation into financial terms of the overall risks in the area.
Furthermore, the project has a “no regrets” approach. In the context of Gaza and its exceptional level of water
scarcity, all solutions for the production of additional non-conventional water resources should be pursued.
Desalinisation capacities will be installed in Gaza in the medium term, but this does not affect the necessity to pursue
other options available, amongst which MAR. In terms of recycling the water produced by the WWTP –otherwise
lost in the sea- the alternative to MAR is the direct reuse of the water for agricultural purposes. This approach is less
efficient because it would need to rely on an installed and therefore energy consuming tertiary treatment (which is
performed by the process of infiltration itself in the case of MAR), and because the water directly transferred to
farmers would be less acceptable socially when coming directly from the WWTP.
E.6.2. Co-financing, leveraging and mobilized long-term investments (mitigation only)
Please provide the co-financing ratio (total amount of co-financing divided by the Fund’s investment in the
project/programme) and/or the potential to catalyze indirect/long-term low emission investment.
Please make a reference to E.6.5 (core indicator for the expected volume of finance to be leveraged).
The co-financing ratio for this project is 1.875.
As mentioned above, there is a potential to replicate this kind of technology and project not only in Palestine, but
also in the region.
E.6.3. Financial viability
Please specify the expected economic and financial rate of return with and without the Fund’s support, based on the
analysis conducted in F.1.
The feasibility study does contemplate, in Outputs 4 and 6, the economic and financial profitability acquired through
an improved access to water showing, in an ideal scenario, that improved access to water and improved cropping
systems lead to relatively high Internal Rate of Returns (IRR), making us believe that the project may create an island
of prosperity in its area of intervention.
The reality of water deficit in Palestine and its particular acuteness in Gaza is such that every cubic meter added to
the water balance has immediate and multiple knock-on effects on every dimension of vulnerability and survival of
the Gazan population. In other words, the alternate scenario of not delivering the adaptation and water supply
infrastructure to the area is certain rupture of the hydraulic, economic and social systems, with drastic geopolitical
consequences.
Over the lifespan of the infrastructure, i.e. 30 years, the AE is confident that in the context of extreme vulnerability
of the population and the accelerating effects of climate change of an already dire scenario, the economic rate of
return of a non-ruptured system is extremely high. Conversely, not maximizing the infiltration and recovery power
of the hydraulic system financed by the project increases drastically the probability of rupture and the IRR becomes
zero.
Reasoning in terms of water-flow rather than in cash-flow – the actualization of which over time is a mere theoretical
calculation – the project will allow the aquifer to sustain the livelihoods and associated economic activity of an
additional 200 000 people at the current level of access to water over the lifetime of the financed infrastructure. In
the baseline scenario, this additional population –resulting of the demographic growth- will find itself, all things
being equal, with no access to water or depleting the last resources for the following generations. Without the GCF
support, we remain in the baseline scenario.
Please describe financial viability in the long run beyond the Fund intervention.
Operation and maintenance of the full NGEST scheme is expected to be highly subsidized by Palestine in the medium
term, until the co-management of the scheme is effective and part of the costs are covered by the users themselves,
APPRAISAL SUMMARY
through the Water Users Association. The costs incurred by Palestine will amount to more than 4 MUSD annually.
Financial resources of Palestine being extremely low in the current situation, these costs will be covered through
direct budgetary support provided in particular by the WB.
E.6.4. Application of best practices

Please explain how best available technologies and practices are considered and applied. If applicable, specify the
innovations/modifications/adjustments that are made based on industry best practices.
The technology applied in this project is referred to as Water Banking (because of the role of the aquifer as storage
and buffer) or Managed Aquifer Recharge (MAR). It is extensively studied and described by the scientific community
(for example: Multi-Objective Optimization of Managed Aquifer Recharge, Aybulat Fatkhutdinov et al., April 2018)
and considered as an effective approach to adaptation to climate change, namely in semi-arid areas of the world
(https://www.soas.ac.uk/ledc/events/groundwater-and-climate-change-2015/file104580.pdf), in particular in the
neighboring Jordan:
“Jordan like many other semi-arid countries in the world is highly dependent on groundwater resources and face
increasing demand and decreasing supply leading to groundwater level declines and potentially salinisation of
groundwater resources. Managed aquifer recharge (MAR) could support an increase in water resources and is defined
as the intentional recharge of groundwater for recovery or environmental purposes and includes the monitoring of
recharge water quality and resulting impacts. It has been applied successfully internationally and its importance is
increasing as a tool for adaptation to climate
change.”(https://www.bgr.bund.de/EN/Themen/Wasser/Projekte/abgeschlossen/TZ/Jordanien/mar_fb_en.html)
E.6.5. Key efficiency and effectiveness indicators
Estimated cost per t CO2eq, defined as total investment cost / expected lifetime emission reductions
(mitigation only)
(a) Total project financing MEUR 44.709782

(b) Requested GCF amount MEUR 23.709782
(c) Expected lifetime emission reductions overtime 166 858,6 tCO2eq
GCF core (d) Estimated cost per tCO2eq (d = a / c) EUR 267______/ tCO2eq
indicators (e) Estimated GCF cost per tCO2eqremoved (e = b / c) EUR 142_______/ tCO2eq
Describe the detailed methodology used for calculating the indicators (d) and (e) above.
Please describe how the indicator values compare to the appropriate benchmarks established in a
comparable context.
Expected volume of finance to be leveraged by the proposed project/programme and as a result of the
Fund’s financing, disaggregated by public and private sources (mitigation only)
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Describe the detailed methodology used for calculating the indicators above.
Please describe how the indicator values compare to the appropriate benchmarks established in a
comparable context.
Other relevant indicators (e.g. estimated cost per co-benefit

generated as a result of the project/programme)
F.1. Economic and Financial Analysis

Please provide the narrative and rationale for the detailed economic and financial analysis(including the financial
model, taking into consideration the information provided in sectionE.6.3).
Climate vulnerability and climate risks in Palestine and Gaza are a humanitarian threat, placing the Palestinians
within the policy realm of disaster risk management and emergency response operations. Economic and
financial analyses at micro level are nevertheless available in Outputs 4 and 6 of the feasibility study.
Based on the above analysis, please provide economic and financial justification (both qualitative and quantitative) for
the concessionality that GCF provides, with a reference to the financial structure proposed in section B.2.
The Gazan population presents an extremely high level of vulnerability and of uncertainty with regard to the
future. The important climate vulnerability, in addition to the demographic growth in Gaza and its consequences
on the water resources, the emergency of the situation, the humanitarian rationale of adaptation to climate
change in the context of Gaza, the insolvability of Palestine and of the farmers (in a very high risk environment)
calls for the highest level of concessionality for the delivery of infrastructure, dedicated to recharging the aquifer,
which is considered a public good. On-farm equipment will be advanced by the project but reimbursed by the
farmers to create an O&M fund for the irrigation scheme, managed by the WUA, which will be key factor for long
run viability of the project.
F.2. Technical Evaluation

Water banking or MAR is a technological approach to artificial aquifer recharge in contexts where water scarcity
calls for recycling of all possible sources of water. In the case of Gaza recycling of treated waste water is one of
only two short/medium term solutions to alleviate pressure on the aquifer and maintain minimal access to
agricultural and domestic water for the population – the other one being massive desalinization of sea water
(representing much more costly, highly emissive and complex investments). The sandiness of the soil in Gaza
makes it a particularly adapted location to perform MAR, due to the high infiltration capacity of such soil.
Further, the MAR scheme proposed in this project includes an off-grid solar energy production field and a net
metering contract with the electricity company, allowing the storage of energy on the local grid. This is a
response to the third element of the vulnerability nexus in Gaza: energy insecurity.
Finally, the proposed approach, through MAR in Gaza, will generate an important climate co-benefit, as well as
in environmental terms: the activation of the water cycle at NGEST will act as a clean “washing machine”
depolluting the aquifer and preventing a health crisis in the downstream Gaza City.
APPRAISAL SUMMARY
F.3. Environmental, Social Assessment, including Gender Considerations
Describe the main outcome of the environment and social impact assessment. Specify the Environmental and Social
Management Plan, and how the project/programme will avoid or mitigate negative impacts at each stage (e.g.
preparation, implementation and operation), in accordance with the Fund’s Environmental and Social Safeguard
(ESS) standard. Also describe how the gender aspect is considered in accordance with the Fund’s Gender Policy and
Action Plan.
Environmental Methodology
Hydro Model Update and for Groundwater Analyses Verification and Modeling
The most updated data provided by the client, up to year 2017, was used to update the model, accounting for
the following:
 The actual infiltrated partially treated wastewater quantities and rates from 2012 to 2017 (15,000 –
20,000 m3/day).
 The updated locations and numbers of the recovery wells.
 The actual design of the first stage of the recovery wells (14 wells) that were constructed by the end of
year 2017.
 The updated time schedule for the operation of the treatment plant and the two stages of the recovery
wells.
The assessment of the impacts on groundwater considered the abstraction rates of the recovery wells, the
possible recharge in the agricultural lands and different scenarios for project implementation. Two scenarios
are considered in the current impact assessment:
1. Without the implementation of recovery scheme.
2. With the implementation of recovery scheme. 27 recovery wells will be implemented on two stages; 14
wells that already constructed and to be operated by the end of 2019 and 13 wells to be operated by the
end of 2021.
Both scenarios took into account the operation of the WWTP by the beginning of 2018. It is important to note
that partially treated wastewater continued to be infiltrated until the beginning of 2018. Since the beginning of
2018, only treated wastewater is infiltrated and will reach its full capacity of 35,600 m3/day of treated
wastewater by June 2018.
Important Environmental Outcomes and Considerations
1. No significant changes have occurred in any of the physical or biological environment of the project areas
since 2013. The main physical and biological characteristics of the environment in the vicinity of the project
area therefore remain unchanged.
2. Recent monitoring results reveal nitrate concentrations ranging from 20mg/l to 70 mg/l in 2017, both in the
monitoring wells and in the recovery wells, indicating an increase in nitrate concentrations since 2012.
These numbers far exceed the WHO standards that indicate a maximum value of 55 mg/l for nitrate, and,
other Jordanian standards, Palestinian standards, Egyptian standards and Palestinian standards.
3. Pathogenic bacteria was also found in the groundwater in monitoring wells in close proximity to the
infiltration basin, since partially treated sewage has been infiltrating the aquifer for 9 years.
4. Heavy metals were analyzed in the same wells close to the infiltration by PWA in mid of year 2016. The heavy
metals concentrations in all analyzed wells were less than the Palestinian standard values for irrigation.
While trace elements were found occasionally in slightly higher levels than indicated in standards, this was
only the case in very few monitoring wells and would therefore not limit the use in irrigation as a general
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rule. It is only recommended that these elements are continuously monitored to avoid water use where
limits are exceeded.
5. All results of major water parameters monitored in first stage recovery wells such as Acidity (PH), E.C., T.D.S,
T.A., B.O.D., SO4, and K have been found to be compliant with Palestinian standards.
6. Water in monitoring wells meets most quality parameters limits set by international and local standards for
unrestricted use in irrigation with the exception of the high nitrate levels.
As a temporary condition (until the washing out of the plume), high nitrogen levels may be
beneficial during early growth stages but may cause yield losses during the later flowering and fruiting
stages. High nitrogen water can be used as a fertilizer early in the season. However, as the nitrogen
needs of the crop diminish later in the growing season, the nitrogen applied to the crop must be
substantially reduced. Blending or changing supplies during the later more critical growth stages would
be helpful. Another option is to plant less sensitive crops, which can utilize the nitrogen from the
irrigation water more effectively. Also, the rates of nitrogen fertilizer supplied to the crop should be
reduced by an amount very nearly equal to that available from the water supply for crops irrigated with
water containing nitrogen. Crop rotations can be planned to utilize residual nitrogen in the soil during
the non-irrigation season.
According to modelling results, the situation is expected to be greatly improved after the
operation of the recovery wells and nitrate levels will be reduced to internationally and locally
acceptable irrigation limits, causing no need for concern.
7. The current water table elevation in the area around the basins is 2 m above mean sea level. After the
operation of the first stage of recovery wells by the end of year 2019, about 20,000 m3/day of
groundwater will be recovered (abstracted). This result in lowering the groundwater table elevation
after two years of operation of the first stage of recovery wells. In 2030, the model estimated that the
water table elevation, in the area around the basins, will be between 2 m and 4 m below mean sea level
if the second stage of recovery wells is not implemented. While, in the same area, the water table
elevation will be between 4 m and 6 m below mean sea level if the second stage is implemented; as
about 18,000 m3/day of groundwater will be abstracted through 13 recovery wells. This will prevent
the vertical building up of the water table, which without recovery will have a negative impact on
current land use.
Social Consultation Methodology and Activities
The research team for this study has adopted multi-dimensional consultation activities that enable the
marginalized, voiceless, youth and women to gain information about the project. As well as gaining information
about their concerns and worries regarding the project during various implementation phases.
Following are the main consultation activities performed until June 2018 (additional engagement activities will
take place until mid-July):
1. Field visit to define various stakeholders during April 2018;
2. Meetings were conducted during April 2018 in order to develop an engagement plan that is locally
tailored for the residential communities;
3. Based on the identification of stakeholders, various questionnaires and guidelines were prepared in
order to engage: i) the residents in the project areas, ii) Governmental municipalities , iii) the CBOs, iv)
health facility, v) Ministry of Endowment and Ministry of Agriculture, vi) the EQA
Important Social Outcomes and Considerations
The general outcomes and recommendations of the social part include:
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1. Importance of engaging stakeholders, including persons or groups who are directly or indirectly
affected by a project, as well as those who may have interest in the project and/or those who have the
ability to influence its outcome, either positively or negatively taking their comments, ideas and
concerns into consideration;
2. Communicating and implementing a viable community grievance mechanism;
3. Municipalities should be involved, engaged and consulted in the process of land acquisition and
compensation to contribute in resolving disputes;
4. Land acquisition should be appropriately handled and addressed as suggested in the RAP. Project
affected people (private well owners and operators) should be compensated, to account for both
property and job losses in a fair and timely manner;
5. Importance of the institutional framework as it is the basis for the operation and success of this project.
Needed improvements of ESIA/RAP and update during inception phase:

In the process of project preparation and, in particular, through interaction with the GCF Secretariat, several
lines of improvement of the ESIA and RAP have been identified, in order to best reflect the final implementation
set-up of the project. Introdution of these improvements in the ESS Documents –and others that may appear
during inception- will be the responsibility of the consultants that elaborated the first versions of ESIA and RAP.
AFD will allocate the necessary funds on its own budget to ensure the update is performed by the initial
consultancy team (if possible), in the first weeks of project inception.
Improvement of the ESIA and RAP will include, among others:
- Integration of the discussion on the consideration of alternatives;
- Integration of the Contingency Plan, with particular and explicit measures to deal with contingencies
affecting quality of water to be infiltrated in the aquifer or distributed in the irrigation scheme;
- Integration of analysis of compliance and performance of existing assets gathered in monthly reports of
the monitoring and water quality control system.
- Integration of an updated institutional arrangements for ESMP implementation;
Furthermore, the final project set-up (e.g. hire an Environmental Manager and a Social Development Officer in
the PMU) as well as the terms of reference for the Technical Assistance are now fully consistent with the ESIA
recommandations, which can be found in the Environmental and Social Commitment Plan (ESCP) attached to
the AFD Contribution Financing Agreement with Palestine. A revised and comprehensive Contingency Plan for
the whole NGEST system will also be produced during inception of the project, based on the existing version
elaborated by PWA.
F.4. Financial Management and Procurement

Describe the project/programme’s financial management and procurement, including financial accounting,
disbursement methods and auditing.
Procurement will be managed by the Central Tendering Department attached to the Ministry of Public Goods
and Housing.
AFD, as the AE, will be responsible for the project implementation and activities carried out by EEs:
AFD will provide oversight of procurement function, prior review and approval, as detailed in the AMA.
Procurement activities and processes will follow AFD procurement policy and standards, as detailed in
the AMA.
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Most disbursements will take the form of direct payments to firms contracted for works, supply of goods or
services.
A special account will be opened at PWA for day to day small scale operational expenses as well as payment of
salaries of PMU staff, where advance payment will be made in the maximum amount of a cumulated EUR 1
085 982. This account will be audited annually by a private firm accredited to international standards.
RISK ASSESSMENT AND MANAGEMENT
GREEN CLIMATE FUND FUNDING PROPOSAL |PAGE 62 OF 80
G
G.1. Risk Assessment Summary
Please provide a summary of main risk factors. Detailed description of risk factors and mitigation measures can be
elaborated in G.2.
Main risk factors are related to:

Management of water quality for agriculture: a monitoring system will be set up by the project and managed
by PWA in coordination with EQA to perform day to day control of the quality of the water injected in the
distribution scheme. The ESIA and ESMP detail the functioning and means of the monitoring system.
Energy needs of the Managed Aquifer Recharge scheme: the project includes alternate sources of energy
(than the grid and generators) through solar panels and a bio-digester.
Acceptance of treated wastewater: in general, social acceptance can be a problem, especially in Muslim
countries; in the case of MAR, the fact that the reuse is not operated directly from the WWTP strongly mitigates
the social risk presented above. There will nevertheless be a need to communicate adequately on this aspect
and make sure there is no confusion and residual reluctance to using the water (it will also depend on the
quality of the water delivered).
G.2. Risk Factors and Mitigation Measures

Please describe financial, technical and operational, social and environmental and other risks that might prevent the
project/programme objectives from being achieved. Also describe the proposed risk mitigation measures.
Selected Risk Factor 1
Probability of risk
Description Risk category Level of impact
occurring
The water in the aquifer is not depolluted fast Social and

Medium (5.1-
enough 20% of project Low
environmental
value)
Mitigation Measure(s)
The NGEST WWTP provides a high quality secondary treatment. Infiltration through 60 meters of sand
completes the secondary treatment to a point that the water, when it enters the aquifer, is considered clean. It
will nevertheless be mixed with relatively polluted water, residual from past infiltration of non-treated water
and will therefore not be drinkable. Modeling of the aquifer and initial tests implemented by the PWA confirm
it will be usable for agriculture when recovered by the wells installed by the project.
It is therefore crucial that the water cycle through the activation of the recovery wells is initiated as soon as
possible, in order to stop the progression of the pollution plume and guarantee that uses of the underground
water will be concentrated in agriculture.
The PWA, through the project, will enhance its monitoring and quality control mechanisms in order to generate
real time information regarding the quality of water extracted from the aquifer and delivered to farmers.
Communication and awareness raising of the population and farmers – also included in this project- will be a
crucial element in the capacity of the implementing agency to mitigate this risk.
RISK ASSESSMENT AND MANAGEMENT
GREEN CLIMATE FUND FUNDING PROPOSAL |PAGE 63 OF 80
G
Probability of risk
occurring
Medium (5.1-
Lack of energy to run the system Technical and
20% of project Medium
operational
value)
The negotiation between Palestine and Israel for access to electricity of the Gaza Strip has been going on for
years and is part of a political discussion.
At this stage Palestine and the local authorities in Gaza have secured an average of 16 hours per day of
electricity from the grid for the NGEST WWTP, which is enough to run the plant. Nevertheless, in general, access
to energy in Gaza, as described above, is problematic due to its fuel dependency.
In this context, the project has taken every possible step to mitigate the energy insecurity in Gaza by
diversifying, as much as possible, the energy mix of the overall MAR scheme: energy from the grid; cogeneration
using byproducts of the WWTP; and, in particular, climate friendly off-grid solar energy production over 8,5 ha.

Probability of risk
occurring
Social and High (>20% of
Social acceptation of TWW environmental project value)
Low
In theory, the use of TWW in Muslim countries poses acceptance issues by the population, namely for religious
reasons. In growing aridity situations, as in Tunisia for instance, these social barriers can be overcome with
growing awareness by the population.
In the case of this project and, in general with MAR, the TWW is infiltrated in the aquifer, blended with
underground water and recovered as such by the wells. It is not direct reuse of TWW – for which the social and
cultural issues mentioned above can arise - and the water distributed to farmers is therefore quasi-
conventional. Awareness raising on this issue will nevertheless be necessary due to the proximity of the
recovery wells from the WWTP; monitoring of the quality of recovered water and communication with users
will be crucial in establishing their trust with the provider. This is part of the FAO assignment which has deep
know how and experiences with MoA in Palestine on this topic.
* Please expand this sub-section when needed to address all potential material and relevant risks.
RESULTS MONITORING AND REPORTING
GREEN CLIMATE FUND FUNDING PROPOSAL | PAGE 64 OF 80 H
H.1. Logic Framework.
Please specify the logic framework in accordance with the GCF’s Performance Measurement Framework under
the Results Management Framework.
H.1.1. Paradigm Shift Objectives and Impacts at the Fund level 11

Paradigm shift objectives
Mitigation objective : Reinforce the sustainability of the Water-Energy nexus for the NGEST
Shift to low- system.
emission
The project will show how emergency solutions related to survival of a whole population
sustainable in the context of Gaza, can be thought and designed along low emission and sustainable
development pathways, the cobenefits of which are an increased resilience to shocks and an increased
pathways efficiency with regard to operation and maintenance costs.
Three climate-resilient co-benefits are expected from the project:
- Increased resilience of Gazan agriculture through the provision of improved water
Increased services for irrigation;
climate-resilient - Recharge of the aquifer and improved access to domestic water of 200 000 people
sustainable exposed to water scarcity;
development - Depollution and preservation of the aquifer.
As a result of achieving these objectives, the process of pollution and overexploitation of
the aquifer will be stopped before they reach an irreversible status.
Target
Means of Mid-term
Expected Result Indicator Verificatio Baseline (if Assumptions
n (MoV) Final
applicabl
e)
Fund-level impacts
Tonnes of carbon Measureme
dioxide nt of the
equivalent (t total solar
CO2eq) reduced power
0 0 316 125
distributed
as a result of
to the
Fund-funded
NGEST
projects/ system
programmes
Cost per tCO2eq Mid-term 0,08
decreased for all and final 0,1
N.A. EUR/kW
Fund-funded evaluations EUR/kWh
h
mitigation
11Information on the Fund’s expected results and indicators can be found in its Performance Measurement Frameworks
available at the following link (Please note that some indicators are under refinement):
http://www.greenclimate.fund/documents/20182/239759/5.3_-
_Performance_Measurement_Frameworks__PMF_.pdf/60941cef-7c87-475f-809e-4ebf1acbb3f4
projects/program
mes
Decisions Additional
by other 8 000 00 funding obtained
Volume of finance 8 000 000 0
leveraged by financial 0 by the Irish
EUR
organizatio EUR Government
Fund funding
ns
Total Number of Palestinian

direct and Authority 223 553
indirect Statistics+ (20% of
beneficiaries; project Norther
0 100 000
information n Gaza
Number of
populati
beneficiaries
on)
relative to total
population
M1.0 Reduced M1.1 *Tonnes of

carbon dioxide Reviews by
emissions third party
through equivalent (t
GHG
increased low- CO2eq) reduced
auditors, 0 40 000 166 858
emission energy or avoided as a etc.
access and result of Fund-
power funded
generation projects/program
mes
A1.1 Change in 18 = In the baseline

actual 0 0 “scenario” (no
expected losses of Governmen loss of project), the
lives and t / PWA – lives as a pollution of the
economic assets Gaza City conseque aquifer would
(US$) due to the Municipalit nce of continue and
A1.0 Increased impact of extreme y data previous more losses of
resilience and climate-related waste lives due to
enhanced disasters in the water unavailability of
livelihoods of the geographic area disaster drinkable water
most vulnerable of the GCF (flooding would be
people, intervention ) due to expected (a
communities and lack of negative figure –
regions treatmen representing
t and avoided losses of
MAR lives- could be
introduced at
No mid-terme and
informati endline)
on
lavailabl
e on loss
of
economi
c assets
A.1.2 Number of Data from Farmers in

the baseline depend
males and
Ministry of on private wells
females
Agriculture, delivering low
benefiting from and FAO. 0 males quality water,
1 600 3 306
the adoption of Assessment unsustainably
males males
diversified, by the extracted from
climate-resilient Water 0 400 900 the aquifer
livelihood options Sector females females females
(including Regulatory
fisheries, Council
agriculture, (independe
tourism, etc.) nt body)
A.2.2 Number of Assessment It is expected that
food-secure s by the not all farms will
households (in FAO and reach food
areas/periods at WSRC 0 1 000 3 000 security after
risk of climate gaining increased
change impacts) access to water,
due mainly to
other factors at
A2.0 Increased play. Food
resilience of security levels
health and well- will be measured
being, and food using FAO
and water methodologies
security and standards.
A.2.3 Number of National 0 male 50 000 100 000 The water

males and statistics / male male infiltrated in the
Gaza City 0 female aquifer in
females with 50 000 100 000
year-round Municipalit substitution to
y data female female water extracted
access to reliable
for agricultural
and safe water
purposes will
supply despite serve the
climate shocks domestic needs
and stresses of 200 000
people that will
appear due to
demographic
growth and that
would otherwise
not have access
to sufficient
quantities of
water (safety of
water will be
closely
monitored by the
PWA, in
accordance to
Palestinian Water
Law).
A.3.1 Number and Environme 0 0 2 Assumptions of
value of physical ntal Quality the value of
assets Agency Value = assets:
made more (EQA) 85
0 EUR 0 EUR MEUR) - The NGEST
resilient to assessment
climate WWTP made
variability and more resilient by
A3.0 Increased change, the Water-Energy
resilience of considering nexus (60 MEUR)
intrastructure and human benefits +
the built (reported where - The irrigation
environment to applicable) scheme made
climate change more resilient
through an
improved
water service
(25 MEUR in
value))
H.1.2. Outcomes, Outputs, Activities and Inputs at Project/Programme level
Target
Means of Mid-
Baselin
Expected Result Indicator Verificatio term(if Assumptions
e Final
n (MoV) applicabl
e)
Project/programme
Outcomes that contribute to Fund-level impacts
outcomes
Number of Design and
technologies and adoption of a
innovative complex and
solutions innovative Water
transferred or Final – Energy nexus,
licensed to evaluation including solar
support low- and EQA – 0 2 3 and biogas
PENRA generation, as
emission
assessment well as a net-
development as a
metering system
result of Fund
with the grid
support.
(mitigation)
Number of
technologies and
innovative
solutions
transferred or Final Design and
licensed to evaluation transfer of an
0 0 1
promote climate and EQA Managed Aquifer
assessment Recharge scheme
resilience as a
result of Fund
support.
(adaptation)
M.5.1 Implementation
Institutional and of the Water –
M.5.0 Strengthening regulatory Energy Nexus
No such System Syste
institutional and systems that EQA and and in particular
system partially m
regulatory systems for improve PENRA effectivity of the
in N. function functio
low-emission planning incentives for assessment Net metering
Gaza ning nning
and development system (in order
low-emission
to maximize use
planning and of solar energy)
development and
their effective
implementation
M6.0 Increased M6.1 Proportion EQA and
number of small, of low-emission PENRA
medium and large low- power supply in a 0 0 40%
assessment
emission power jurisdiction or and data
suppliers market
M.6.3 MWs of
low-emission
energy capacity EQA –
installed, PENRA 8
0 4 MWp
generated and/or assessment MWp
and data
rehabilitated as a
result of GCF
support
The Water Sector
Regulatory
Council (WSRC)
acts as an
WSRC
A.5.1 Institutional effective
perfor
and regulator of the
ming
regulatory systems Water Sector in
Level of Low to its
A5.0 Strengthened that inexista regulat
order to improve
funding and planning and
institutional and improve incentives nt Funding ory
autonomy / allocation of
regulatory systems for for power of funding directed role
climate-responsive climate resilience investments to
WSRC and to WSRC with
and reduce water
planning and autono funds
their effective scarcity and
development my and
promote co-
implementation indepe
management of
ndanc
the resource
e
between users
and government
(as per the Water
Law)
A7.1 Use by Water

vulnerable metering
system co- The Fund-
households, 5 m3 of supported tool
communities, managed by
A7.0 Strengthened water considered is the
the WUA
adaptive capacity and businesses and from the 13
and PWA at 0 water recovery
reduced exposure to public-sector recovery m3/ye scheme and its
the entry
climate risks services of Fund- scheme ar use by farmers
point of the
supported tools, every for irrigation.
irrigation
instruments, year
scheme and
strategies and at farm
activities to gate.
respond to Independen
climate change t
and variability assessment
from the
WSRC
Farmers (men
and women) are
A8.1 Number of made aware of
males and the effects of
WSRC
Male:50 Male: climate change
A.8.0 Strengthened females made independen Male: 0
0 1 000 on water scarcity
awareness of climate aware of climate t
Female: anf means of
threats and risk- threats and assessment Female: Femal
0 increased
reduction processes. related 100 e: 200 efficiency in use
appropriate of agricultural
response. water.
Project/programme
Outputs that contribute to outcomes
outputs
Quantity of Measureme 0 26 26 The WWTP
“usable” water nt at functions at
available (in Mm3) infiltration capacity
point and
field
surveys
amongst
farmers
and
surroundin
g urban
1. Production of
population
additional quantities of
(measurme
water for agricultural
nts in
use
quantity
will be
implemente
d by
independen
t lab in
Ramallah,
in
accordance
with
national
standards –
Warer Law)
Decrease in direct WSRC 13 000 6 000 00 0

pumping in the assessment 000m3 0m3
aquifer by the
farmers
Increased quality Measureme 100 75 50

of water nt of nitrate
containts
(mg/l)
Number of hectares Field 0 500 1 200 Farmers are
benefiting from the survey/sate willing to pay for
project llite images the water service
New cropping
patterns are
introduced by the
FAO and adopted
by the farmers
2. Development of Change in FAO Mostly Inceptio Mostly

irrigation, water agricultural assessment horticul n of drip trees
efficiency and climate practices and tural irrigatio croppi
resilient agriculture cropping patterns crops n ng and
agricultu rotatio
re ns on
high
value
crops
under
drip
irrigati
on
Number of people Counting of 0 2 500 5 000 TA and NGO’s are
trained and trainees people, with mobilized for the
members of and scoring with 75% community work.
3. Management of the community of the level 60% uptake
water cycle and empowered as well of intake uptake
capacity building of as uptake of (performed
stakeholders capacity building by the TA)
Capacity of the Scoring of 0 Poor to High
WUAs and WUAs for medium score
involvement of governance score
women in decision ,
making administrat
ive and
financial
manageme
nt, quality
of services
Activities Description Inputs Description
Rehabilitation of 7 infiltration Works

1.1. An additional Cleaning of the infiltration
water resource is basins for recharge of the aquifer basins ; drilling of wells
Tendering of
created by Managed Implementation of the recovery and construction of a new
equipments and
Aquifer Recharge scheme (14 wells and 1 reservoir) goods reservoir.
Works Delivery and installation of

solar panels
Tendering of
1.2. Water – Energy Delivery of 2 PV schemes to equipments and
Nexus, development of sustain the overall needs of the goods
renewable low- NGEST scheme for a total of 7,5
emission energy MWp Consultancy
solutions
services for
supervision of
works
Development of the irrigation Construction of an
scheme bringing the water from Works irrigation scheme
the recovery scheme to the farms
Tendering of
2.1. An improved water
equipments and
service for irrigation is
goods
brought to 4 200
beneficiaries over
Consultancy
1 500 ha
services for
supervision of
works
Supervision by FAO
Provision of technical and
economical services to
farmers to improve
productivity
Extension services
Extension services to farmers by FAO and MoA Equipment of beneficiary
2.2. Increased climate staff farms with localized
Subsidy of on-farm water saving irrigation systems (e.g drip
resilience of
equipment Consultancy irrigation)
agriculture, adaptation
of cropping systems to services
Gender, land tenure and Support to land owning
climate change irrigation – a Gender-responsive women; empowerment of
Tendering of
approach to agricultural communities to increase
equipments and
resilience to climate change their gender sensitivity in
goods
agriculture; training and
capacity building of
women in agriculture.
Support to the PWA for
implementation and
3.1. Strengthening of coordination of the project
PWA capacities in its cycle Technical assistance Consultancy
role of coordination services
Setting-up of a water quality
and quality control of
monitoring and control system
the process of reuse of
treated waste water
The FAO and MoA will

support farmers in
organizing within the WUA
in order to manage the
irrigation scheme.
Identification and establishment Particular attention will be
of the co-management scheme – given to the participation
3.2. Exit Strategy and Structuring and capacity building of women in the decision
Transfer of O&M to of a WUA Support by FAO making processes.
Water Users
Integration of women in the
governance bodies of the WUA
A set of actions will be

implemented in order to
Support to communities and increase the resilience of
farmers to increase resilience and the population in the face
develop coping mechanisms in of climate change.
the face of further crises.
3.3. Communities are Consultancy
empowered and Diagnostic and analysis of the
services, NGOS and
supported, in the conditions of recovery and
FAO support
context of the conflict restoration of unused land within
in Gaza the irrigable area
Psychosocial support and
strengthening of community and
household bounds
3.4. Capitalization of Knowledge building. Intellectual The scaling-up and

Consultancy
the outputs/outcomes services for capitalization replication of the project’s
services
for replication and key outputs will take place
upscaling in Palestine through a capitalization
process that will involve
independent expertise.
H.2. Arrangements for Monitoring, Reporting and Evaluation
Besides the arrangements (e.g. semi-annual performance reports) laid out in AMA, please provide project/programme
specific institutional setting and implementation arrangements for monitoring and reporting and evaluation. Please
indicate how the interim/mid-term and final evaluations will be organized, including the timing.
The project will have a specific and institutionalized approach to oversight, monitor and evaluate. Apart from the
necessary monitoring and evaluation tools the PMU will indeed develop with the assistance of the Technical
Assistance, the institutional framework of the project includes the Water Sector Regulatory Council as an
external body in charge of independently monitoring and evaluating the project’s achievements, as per the
Palestinian Water Law requirements and standards.
Roles and responsibilities of the WSRC in the project need to be detailed further at inception report stage. Indeed,
the reform of the water sector is not yet completed and more specifically, the independency of WSRC is
unfortunately not yet formally agreed and approved.
In this context, the PWA-PMU will be in charge of centralizing and managing the monitoring system of the project.
In particular, the PMU will be responsible for co-organizing the Mid-term review, as well as the end-line final
evaluation of the project, in line with the incoming GCF guidelines.
AFD will tender and contract the consultancy services for the ex-post evaluation of the project, after full
completion of the activities (usually one year after project completion).
Please provide methodologies for monitoring and reporting of the key outcomes of the project/programme.
PWA will be in charge of semi-annually reporting on hydraulic activities of the project, whereas the MoA-FAO
will report semi-annually as well on on-farm, agricultural activities. Independent data sources will be mobilized
and used for the mid-term and final evaluations.
For both PWA and FAO, an M&E specialist will be involved in gathering data in order to update indicators of key
outcomes of the project. All inputs under each activity are designed in order to contribute the key outcomes of the
project. As presented in the Logframe, it is expected that most of the project outcomes will be reached after project
completion. Periodic reporting will then present what has been completed on the path towards the outcomes.
ANNEXES
GREEN CLIMATE FUND FUNDING PROPOSAL | PAGE 78 OF 80
I
I. Supporting Documents for Funding Proposal
☒ NDA No-objection Letter
☒ Feasibility Study
☒ Integrated Financial Model that provides sensitivity analysis of critical elements (xls format, if applicable)
☒ Confirmation letter or letter of commitment for co-financing commitment (If applicable)
☒ Project/Programme Confirmation/Term Sheet (including cost/budget breakdown, disbursement schedule,
etc.) – see the Accreditation Master Agreement, Annex I
☒ Environmental and Social Impact Assessment (ESIA) or Environmental and Social Management Plan
(If applicable)
☒ Appraisal Report or Due Diligence Report with recommendations(If applicable)
☒ Evaluation Report of the baseline project(If applicable)
☒ Map indicating the location of the project/programme
☒ Timetable of project/programme implementation
* Please note that a funding proposal will be considered complete only upon receipt of all the applicable supporting
documents.

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FP119: Water Banking and Adaptation of Agriculture to Climate

Change in Northern Gaza

Palestine | Agence Française de Developpement(AFD) | Decision B.24/09

Accredited Entity: Agence Française de Développement (AFD)

Date of Submission: 25 June 2018

Section A PROJECT / PROGRAMME SUMMARY

Section B FINANCING / COST INFORMATION

Section C DETAILED PROJECT / PROGRAMME DESCRIPTION

Section D RATIONALE FOR GCF INVOLVEMENT

Section E EXPECTED PERFORMANCE AGAINST INVESTMENT CRITERIA

Section F APPRAISAL SUMMARY

Section G RISK ASSESSMENT AND MANAGEMENT

Section H RESULTS MONITORING AND REPORTING

Note to accredited entities on the use of the funding proposal template

Please submit the completed form to:

AFD Agence Française de Développement

A.1.3. Country (ies) / region Palestine

A.1.4. National designated authority (ies) Environment Quality Authority

A.1.5. Accredited entity Agence Française de Développement

A.1.5.a.Access modality ☐ Direct ☒ International

A.1.8. Mitigation / adaptation focus ☐ Mitigation ☐ Adaptation ☒ Cross-cutting

A.1.9. Date of submission 25 June 2018, V2 28 May 2019

A.1.11. Results areas(mark all that apply)

Reduced emissions from:

☐ Low emission transport

☐ Buildings, cities and industries and appliances

☐ Forestry and land use

Increased resilience of:

A.3. Project/Programme Milestone

Expected financial close 31/12/2026

Project/programme lifespan 5 years

(a) Total 44.709782

Total requested million euro

Lead financing institution: AFD

B.3. Financial Markets Overview (not applicable)

C.1. Strategic Context

OUTPUT 1: PRODUCTION OF ADDITIONAL QUANTITIES OF WATER FOR AGRICULTURAL USE

The red area shows the progression of

Activity 1.1 An additional water resource is created by Managed Aquifer Recharge

OUTPUT 2: DEVELOPMENT OF IRRIGATION, WATER EFFICIENCY AND CLIMATE RESILIENT AGRICULTURE

- Agricultural farms and livelihoods are maintained in Northern Gaza ;

Irrigation methods Field application

C.4. Background Information on Project / Programme Sponsor (Executing Entity)

2- Project manager and Material access coordinator 2019 : 100%

3- Procurement Manager (based in Ramallah) 2019 : 100%

4- Financial Manager (based in Gaza) 2019 : 100%

5- Site Manager - Environmental and Social + 2019 : 100%

6- Site Manager - Electrical Engineer (based in Gaza) 2019 : 100%

7- Site Manager - Civil Engineer + Irrigation scheme 2019 : 100%

8- Site Manager - Rehabilitation of Effluent (based in 2019 : 100%

9- 1 receptionist/secretary (based in Gaza) 2019 2023 : 100%

10- Operator 1 (based in Gaza) 2019 2023 : 100%

11- Operator 2 (based in Gaza) 2019 2023 : 100%

12- Guard 1 (based in Gaza) 2019 2023 : 100%

13- Guard 2 (based in Gaza) 2019 2023 : 100%

14- Driver (based in Gaza) 2019 2023 : 100%

C.5. Market Overview (not applicable)

C.6. Regulation, Taxation and Insurance (if applicable)

C.7. Institutional / Implementation Arrangements

Governance of the project

Water deficit related GCF cofinancing ratio of water deficit

CLIMATE VALUE FOR MONEY

Paradigm-shift Objective Expected result of the project